Even though it may not be a huge buy, we think it was good to see that Tarang Desai, Independent Non-Executive Director Harmony Engineering Limited (NSE: SADBHAV) recently spent ₹103,000 to buy the stock at ₹20.70 per share. Still, it only increased his shareholding by a modest percentage, and it wasn’t a big buy in absolute value either.
View our latest analysis for Harmony Engineering
Harmony Engineering Last Year’s Insider Transactions
In the past twelve months, the largest single buy by an insider occurred when insider Shantaben Patel bought shares worth ₹15m at a price of ₹26.62 per share. This means that an insider was happy to buy shares above the current price of ₹17.55. His outlook may have changed since then, but it at least shows that he felt optimistic at the time. We always keep in mind the price that insiders pay when they buy shares. As a general rule, we feel more positive about a stock if insiders have bought shares above current prices, as this suggests they view the stock as a good value, even That too at high cost.
While Harmony Engineering insiders bought shares during the past year, they did not sell. The average purchase price was around ₹20.55. These transactions suggest that insiders find the current price attractive. You can see insider trading (by companies and individuals) during the last year shown in the chart below. If you click on the chart, you can see all individual transactions including share price, date and time!
Harmony Engineering isn’t the only stock insider buying. so take a look at free List of growing companies with insider buyouts.
Does Harmony Engineering claim high insider ownership?
Looking at the total insider shareholding in a company can help you see whether they are well aligned with common shareholders. A high insider ownership often makes a company’s leadership more mindful of shareholder interests. Sadbhav Engineering insiders hold shares worth approximately ₹962 million. This equates to 32% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are high enough to suggest alignment between insiders and other shareholders.
So what do the insider trading of Harmony Engineering indicate?
It’s definitely a positive to see the recent insider buying. We also rely on the longer term picture of insider trading. But we don’t feel that way about the fact that the company is running at a loss. Once you factor in the high insider ownership, it certainly looks like insiders are positive about Harmony Engineering. Good! In addition to learning about insider trading, it is beneficial to identify the risks facing Harmony Engineering. At Simply Wall St, we’ve found that Harmony Engineering has 4 warning signs (3 makes us uncomfortable!) that deserve your attention before proceeding with your analysis.
Undoubted Harmony Engineering May Not Be the Best Stock to Buy, so you might want to check it out free Collection of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivatives transactions.
Valuation is complicated, but we’re helping to make it simple.
find out whether Harmony Engineering potentially overpriced or underpriced by checking out our comprehensive analysis, which includes Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.
VIEW FREE ANALYSIS
Have feedback on this article? Worried about content? keep in touch directly with us. Alternatively, email editorial-team(at)simplywallst.com.
This article from Simply Wall St is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock, and does not take into account your objectives, or your financial situation. We aim to bring you long term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall Street has no position in any of the stocks mentioned.