Bimla Jalan Just Bought 1.4% More Shares In Linc Pen & Plastics Limited (NSE:LINCPEN)

Whilst it may not be a huge deal, we thought it was good to see that Bimla Jalan, who is a company insider, recently bought ₹1.4m worth of stock, for ₹181 per share. Although the purchase is not a big one, increasing their shareholding by only 1.4%, it can be interpreted as a good sign.

See our latest analysis for Linc Pen & Plastics

The Last 12 Months Of Insider Transactions At Linc Pen & Plastics

In fact, the recent purchase by Bimla Jalan was the biggest purchase of Linc Pen & Plastics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹174 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Bimla Jalan was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Linc Pen & Plastics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Linc Pen & Plastics

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. It's great to see that Linc Pen & Plastics insiders own 66% of the company, worth about ₹1.7b. 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 Linc Pen & Plastics Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Linc Pen & Plastics. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Linc Pen & Plastics (1 shouldn't be ignored!) that we believe deserve your full attention.

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. 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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