R. Ramakrishnan Is The Independent Director of Solara Active Pharma Sciences Limited (NSE:SOLARA) And They Just Picked Up 40% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Solara Active Pharma Sciences Limited (NSE:SOLARA) Independent Director, R. Ramakrishnan, recently bought ₹1.9m worth of stock, for ₹476 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 40%.

View our latest analysis for Solara Active Pharma Sciences

Solara Active Pharma Sciences Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Chaitanya Vaidya, for ₹15m worth of shares, at about ₹413 per share. That means that an insider was selling shares at slightly below the current price (₹464). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 79% of Chaitanya Vaidya's holding.

Happily, we note that in the last year insiders paid ₹17m for 35.61k shares. But they sold 41000 shares for ₹18m. All up, insiders sold more shares in Solara Active Pharma Sciences than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Solara Active Pharma Sciences better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Solara Active Pharma Sciences

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 17% of Solara Active Pharma Sciences shares, worth about ₹2.2b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Solara Active Pharma Sciences Tell Us?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Solara Active Pharma Sciences insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Solara Active Pharma Sciences has 3 warning signs (and 1 which is significant) we think 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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