The Chief Executive Officer of Lotus Eye Hospital and Institute Limited (NSE:LOTUSEYE), K. Ramalingam, Just Bought 17% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Lotus Eye Hospital and Institute Limited (NSE:LOTUSEYE) Chief Executive Officer, K. Ramalingam, recently bought ₹229k worth of stock, for ₹30.14 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 17%.

Check out our latest analysis for Lotus Eye Hospital and Institute

The Last 12 Months Of Insider Transactions At Lotus Eye Hospital and Institute

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

While Lotus Eye Hospital and Institute insiders bought shares during the last year, they didn't sell. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Lotus Eye Hospital and Institute Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Lotus Eye Hospital and Institute insiders own 66% of the company, worth about ₹391m. 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 Do The Lotus Eye Hospital and Institute Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Lotus Eye Hospital and Institute insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Lotus Eye Hospital and Institute (of which 1 is significant!) you should know about.

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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