Investors who take an interest in Zydus Wellness Limited (NSE:ZYDUSWELL) should definitely note that insider Pankaj Patel recently paid ₹1,604 per share to buy ₹16m worth of the stock. However, it only increased shareholding by a small percentage, and it wasn’t a huge purchase by absolute value, either.
Before we look at these insider transactions though, you might like to know that our analysis indicates that ZYDUSWELL is potentially overvalued!
Zydus Wellness Insider Transactions Over The Last Year
In fact, the recent purchase by insider Pankaj Patel was not their only acquisition of Zydus Wellness shares this year. Earlier in the year, they paid ₹1,523 per share in a ₹134m purchase. That means that an insider was happy to buy shares at around the current price of ₹1,638. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. Happily, the Zydus Wellness insiders decided to buy shares at close to current prices.
Zydus Wellness insiders may have bought shares in the last year, but they didn’t sell any. 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!
Zydus Wellness is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Zydus Wellness Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Zydus Wellness insiders own about ₹8.8b worth of shares (which is 8.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Zydus Wellness Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Zydus Wellness. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Zydus Wellness.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
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