G. Vivekanand Is The Non-Executive Vice Chairman of the Board of Visaka Industries Limited (NSE:VISAKAIND) And They Just Picked Up 1.6% More Shares

Potential Visaka Industries Limited (NSE:VISAKAIND) shareholders may wish to note that the Non-Executive Vice Chairman of the Board, G. Vivekanand, recently bought ₹24m worth of stock, paying ₹241 for each share. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.

View our latest analysis for Visaka Industries

Visaka Industries Insider Transactions Over The Last Year

Notably, that recent purchase by G. Vivekanand is the biggest insider purchase of Visaka Industries shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (₹317), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 513.86k shares for ₹106m. On the other hand they divested 10.00k shares, for ₹2.2m. In total, Visaka Industries insiders bought more than they sold over the last year. Their average price was about ₹205. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Visaka Industries 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.

Insider Ownership of Visaka Industries

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Visaka Industries insiders own about ₹2.4b worth of shares (which is 47% of the company). 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 Visaka Industries Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Visaka Industries. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Visaka Industries you should be aware of.

But note: Visaka Industries 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.

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