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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 shareholders might well want to know whether insiders have been buying or selling shares in Geojit Financial Services Limited (NSE:GEOJITFSL).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Geojit Financial Services
The Last 12 Months Of Insider Transactions At Geojit Financial Services
There wasn't any very large single transaction over the last year, but we can still observe some trading.
While Geojit Financial Services insiders bought shares last year, they didn't sell. 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!
Geojit Financial Services is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Geojit Financial Services Have Bought Stock Recently
It's good to see that Geojit Financial Services insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought ₹5.9m worth of shares. That shows some optimism about the company's future.
Does Geojit Financial Services Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Geojit Financial Services insiders own 36% of the company, worth about ₹2.4b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Geojit Financial Services Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Geojit Financial Services. Looks promising! Along with insider transactions, I recommend checking if Geojit Financial Services is growing revenue. This free chart of historic revenue and earnings should make that easy.