Whilst it may not be a huge deal, we thought it was good to see that the Hindcon Chemicals Limited (NSE:HINDCON) MD & Director, Sanjay Goenka, recently bought ₹1.4m worth of stock, for ₹18.67 per share. However, it only increased their shares held by 2.8%, and it wasn’t a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Hindcon Chemicals
In fact, the recent purchase by Sanjay Goenka was the biggest purchase of Hindcon Chemicals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of ₹18.15. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Sanjay Goenka was the only individual insider to buy shares in the last twelve months.
Sanjay Goenka bought 120.00k shares over the last 12 months at an average price of ₹15.55. 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!
Hindcon Chemicals 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 Hindcon Chemicals 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It’s great to see that Hindcon Chemicals insiders own 43% of the company, worth about ₹80m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Hindcon Chemicals Insiders?
It’s certainly positive to see the recent insider purchase. 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 Hindcon Chemicals. Looks promising! 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 3 warning signs for Hindcon Chemicals you should be aware of, and 2 of these can’t be ignored.
But note: Hindcon Chemicals 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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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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