Insider Spends ₹242k Buying More Shares In InfoBeans Technologies – Simply Wall St
Stock Analysis
Even if it's not a huge purchase, we think it was good to see that Mitesh Bohra, the Co-Founder of InfoBeans Technologies Limited (NSE:INFOBEAN) recently shelled out ₹242k to buy stock, at ₹483 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.
View our latest analysis for InfoBeans Technologies
Co-Founder Mitesh Bohra previously made an even bigger purchase of ₹746k worth of shares at a price of ₹746 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹529). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid ₹2.4m for 3.75k shares. But insiders sold 400.00 shares worth ₹1.5k. Overall, InfoBeans Technologies insiders were net buyers during the last year. They paid about ₹637 on average. I'd consider this a positive as it suggests insiders see value at around the current price, which is ₹529. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. InfoBeans Technologies insiders own 79% of the company, currently worth about ₹10b 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.
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest InfoBeans Technologies insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing InfoBeans Technologies. At Simply Wall St, we found 1 warning sign for InfoBeans Technologies that deserve your attention before buying any shares.
Of course InfoBeans Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Find out whether InfoBeans Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of 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 St has no position in any stocks mentioned.
InfoBeans Technologies Limited designs, builds, and sustains enterprise-grade software solutions in USA, Europe, and Asia.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
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Excellent balance sheet with proven track record.
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