The Chairman of PSP Projects Limited (NSE:PSPPROJECT), Prahaladbhai Patel, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Prahaladbhai Patel, the Chairman of PSP Projects Limited (NSE:PSPPROJECT) recently shelled out ₹1.1m to buy stock, at ₹425 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for PSP Projects

The Last 12 Months Of Insider Transactions At PSP Projects

There wasn't any very large single transaction over the last year, but we can still observe some trading.

In total, PSP Projects insiders sold more than they bought over the last year. 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PSP Projects insiders own 75% of the company, currently worth about ₹12b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At PSP Projects Tell Us?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that PSP Projects insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for PSP Projects that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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