Bimla Jalan Just Bought 5.8% 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 ₹5.0m worth of stock, for ₹166 per share. However, it only increased their shares held by 5.8%, and it wasn't a huge purchase by absolute value, either.

View 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. So it's clear an insider wanted to buy, at around the current price, which is ₹169. 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 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 Linc Pen & Plastics insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Bimla Jalan.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Linc Pen & Plastics 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 Linc Pen & Plastics Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Linc Pen & Plastics insiders own 66% of the company, currently worth about ₹1.6b based on the recent share price. 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 Do The Linc Pen & Plastics Insider Transactions Indicate?

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 Linc Pen & Plastics. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Linc Pen & Plastics (of which 1 is concerning!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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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