We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Silver Touch Technologies Limited (NSE:SILVERTUC), 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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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Silver Touch Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman & Managing Director Vipul Thakkar bought ₹11m worth of shares at a price of ₹121 per share. So it’s clear an insider wanted to buy, at around the current price. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Happily, we note that in the last year insiders bought 850.00k shares for a total of ₹103m. In the last twelve months there was more buying than selling by Silver Touch Technologies insiders. They paid about ₹121 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of ₹124. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Silver Touch Technologies Insiders Bought Stock Recently
There was some insider buying at Silver Touch Technologies over the last quarter. Namrata Shah purchased ₹2.0m worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.