Shrey Ruia Just Bought 36% More Shares In Shekhawati Poly-Yarn Limited (NSE:SPYL)

Whilst it may not be a huge deal, we thought it was good to see that Shrey Ruia, who is a company insider, recently bought ₹4.1m worth of stock, for ₹0.38 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 36%.

Check out our latest analysis for Shekhawati Poly-Yarn

The Last 12 Months Of Insider Transactions At Shekhawati Poly-Yarn

In fact, the recent purchase by Shrey Ruia was the biggest purchase of Shekhawati Poly-Yarn shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹0.35 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. 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. Shrey Ruia was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Shekhawati Poly-Yarn is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Shekhawati Poly-Yarn insiders own 49% of the company, worth about ₹64m. 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 Do The Shekhawati Poly-Yarn Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Shekhawati Poly-Yarn. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 2 warning signs for Shekhawati Poly-Yarn (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

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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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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