Insiders who bought Websol Energy System Limited (NSE: WEBELSOLAR) over the past 12 months can probably not pay attention to the stock’s recent 13% drop. The reason is, despite the recent loss, that the initial insider purchase value of 2.5 million yen is now worth 4.6 million yen.
While insider trading isn’t the most important thing when it comes to investing for the long term, logic dictates that you pay attention to whether insiders are buying or selling stocks.
See our latest review for Websol Energy System
Insider Transactions of Websol Energy System in the Last Year
There hasn’t been a very large single trade in the past year, but we can still see some trade.
Sohan Agarwal bought 62,000 shares in the past 12 months at an average price of 40.42. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you can see the precise detail of each insider trade!
Websol Energy System isn’t the only stock that insiders buy. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Insider property of Websol Energy System
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders own 19% of the shares of Websol Energy System, worth around 482 million yen. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
What could insider trading at Websol Energy System tell us?
We certainly don’t mind the fact that there haven’t been any insider trades from Websol Energy System recently. On a more positive note, transactions over the past year are encouraging. With strong insider ownership and encouraging transactions, it seems Websol Energy System insiders believe the company has merit. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. At Simply Wall St, we found 3 warning signs for Websol Energy System that deserve your attention before buying stocks.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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