The recent 3.8% drop in Asahi India Glass Limited's (NSE:ASAHIINDIA) stock could come as a blow to insiders who purchased ₹43m worth of stock at an average buy price of ₹551 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth ₹38m, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing. Airtight Glass Jars

Check out our latest analysis for Asahi India Glass

Over the last year, we can see that the biggest insider purchase was by insider Brij Labroo for ₹41m worth of shares, at about ₹562 per share. That means that even when the share price was higher than ₹492 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Brij Labroo was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 77.77k shares worth ₹43m. But they sold 72.57k shares for ₹39m. In the last twelve months there was more buying than selling by Asahi India Glass insiders. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Asahi India Glass insiders own 29% of the company, worth about ₹35b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

The fact that there have been no Asahi India Glass insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Asahi India Glass 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. While conducting our analysis, we found that Asahi India Glass has 2 warning signs and it would be unwise to ignore these.

But note: Asahi India Glass may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 Asahi India Glass 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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Asahi India Glass Limited, an integrated glass and windows solutions company, manufactures and supplies various glass products in India and internationally.

Outstanding track record with excellent balance sheet.

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