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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Berger Paints India Limited (NSE:BERGEPAINT), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Berger Paints India
Berger Paints India Insider Transactions Over The Last Year
There wasn't any very large single transaction over the last year, but we can still observe some trading.
Deeksha Gujral ditched 10.70k shares over the year. The average price per share was ₹332. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Berger Paints India Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Berger Paints India insiders own 2.5% of the company, currently worth about ₹8.0b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Berger Paints India Tell Us?
The fact that there have been no Berger Paints India insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Berger Paints India insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Berger Paints India, you should check out this free report on analyst forecasts for the company.