Reena Bhagwati Is The Independent Director of The Anup Engineering Limited (NSE:ANUP) And They Just Picked Up 6.9% More Shares

Even if it's not a huge purchase, we think it was good to see that Reena Bhagwati, the Independent Director of The Anup Engineering Limited (NSE:ANUP) recently shelled out ₹1.8m to buy stock, at ₹1,010 per share. However, it only increased their shares held by 6.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Anup Engineering

Anup Engineering Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Executive Officer, Rishi Kapoor, sold ₹17m worth of shares at a price of ₹869 per share. That means that even when the share price was below the current price of ₹1,052, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was 100% of Rishi Kapoor's holding.

Happily, we note that in the last year insiders paid ₹5.8m for 8.64k shares. On the other hand they divested 24.63k shares, for ₹22m. In total, Anup Engineering insiders sold more than they bought over the last year. The sellers received a price of around ₹874, on average. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Anup Engineering

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.6% of Anup Engineering shares, worth about ₹684m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Anup Engineering Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that Anup Engineering 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. In terms of investment risks, we've identified 1 warning sign with Anup Engineering and understanding it should be part of your investment process.

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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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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