Founder Sukumar Srinivas Just Bought A Handful Of Shares In Shankara Building Products Limited (NSE:SHANKARA)

Even if it's not a huge purchase, we think it was good to see that Sukumar Srinivas, the Founder of Shankara Building Products Limited (NSE:SHANKARA) recently shelled out ₹326k to buy stock, at ₹326 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Shankara Building Products

The Last 12 Months Of Insider Transactions At Shankara Building Products

Notably, that recent purchase by Sukumar Srinivas is the biggest insider purchase of Shankara Building Products shares that we've seen in the last year. That implies that an insider found the current price of ₹333 per share to be enticing. 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 Shankara Building Products insider decided to buy shares at close to current prices. Sukumar Srinivas was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Shankara Building Products is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shankara Building Products insiders own about ₹4.3b worth of shares (which is 56% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Shankara Building Products Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shankara Building Products. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shankara Building Products. For instance, we've identified 4 warning signs for Shankara Building Products (2 make us uncomfortable) you should be aware of.

Of course Shankara Building Products 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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