Insider Buyers At North Eastern Carrying Sitting On ₹9.8m Profit

Insiders who purchased North Eastern Carrying Corporation Limited (NSE:NECCLTD) shares in the past 12 months are unlikely to be deeply impacted by the stock's 11% decline over the past week. After taking the recent loss into consideration, the ₹68.3m worth of stock they bought is now worth ₹78.1m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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North Eastern Carrying Insider Transactions Over The Last Year

The Chairman & MD Sunil Jain made the biggest insider purchase in the last 12 months. That single transaction was for ₹68m worth of shares at a price of ₹15.18 each. We do like to see buying, but this purchase was made at well below the current price of ₹17.36. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and 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!

See our latest analysis for North Eastern Carrying

North Eastern Carrying is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. North Eastern Carrying insiders own about ₹464m worth of shares. That equates to 26% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The North Eastern Carrying Insider Transactions Indicate?

It doesn't really mean much that no insider has traded North Eastern Carrying shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like North Eastern Carrying insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for North Eastern Carrying (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course North Eastern Carrying 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 of direct interests only, but not derivative transactions or indirect interests.

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