Sarika Gupta Just Bought 108% More Shares In PG Electroplast Limited (NSE:PGEL)

Whilst it may not be a huge deal, we thought it was good to see that Sarika Gupta, who is a company insider, recently bought ₹2.2m worth of stock, for ₹50.72 per share. Even though that isn't a massive buy, it did increase their holding by 108%, which is arguably a good sign.

See our latest analysis for PG Electroplast

The Last 12 Months Of Insider Transactions At PG Electroplast

Notably, that recent purchase by Sarika Gupta is the biggest insider purchase of PG Electroplast shares that we've seen in the last year. That implies that an insider found the current price of ₹62.50 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

While PG Electroplast insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

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 PG Electroplast insiders own 76% of the company, worth about ₹933m. 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 PG Electroplast Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest PG Electroplast insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 4 warning signs for PG Electroplast (1 is concerning) you should be aware of.

Of course PG Electroplast 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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