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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Onward Technologies Limited (NSE:ONWARDTEC), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
View our latest analysis for Onward Technologies
The Last 12 Months Of Insider Transactions At Onward Technologies
MD & Director Jigar Mehta made the biggest insider purchase in the last 12 months. That single transaction was for ₹5.7m worth of shares at a price of ₹77.51 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. We generally consider it a positive if insiders have been buying on market, even above the current price.
Happily, we note that in the last year insiders bought 406.62k shares for a total of ₹31m. In total, Onward Technologies insiders bought more than they sold over the last year. They paid about ₹75.92 on average. These transactions suggest that insiders have considered the current price of ₹60.35 attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Onward Technologies 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 Onward Technologies Have Bought Stock Recently
We saw some Onward Technologies insider buying shares in the last three months. Yogesh Desai shelled out ₹1.6m for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.