Executive Chairman Ashok Sarin Just Bought A Handful Of Shares In Anant Raj Limited (NSE:ANANTRAJ)

Even if it's not a huge purchase, we think it was good to see that Ashok Sarin, the Executive Chairman of Anant Raj Limited (NSE:ANANTRAJ) recently shelled out ₹1.3m to buy stock, at ₹18.38 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Anant Raj

The Last 12 Months Of Insider Transactions At Anant Raj

The insider Anil Sarin made the biggest insider purchase in the last 12 months. That single transaction was for ₹1.3b worth of shares at a price of ₹33.95 each. That means that an insider was happy to buy shares at above the current price of ₹18.00. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Anant Raj insiders bought shares during the last year, they didn't sell. Their average price was about ₹21.19. These transactions suggest that insiders have considered the current price attractive. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Anant Raj Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Anant Raj insiders own 70% of the company, worth about ₹3.7b. 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 Anant Raj Insiders?

It is good to see recent purchasing. 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 Anant Raj. That's what I like to see! 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 5 warning signs for Anant Raj (of which 2 are significant!) you should know about.

Of course Anant Raj may not be the best stock to buy. So you may wish to see this free collection of high quality 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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