Stock Analysis

Trade Alert: Aanal Bhagwati At The Anup Engineering Limited (NSE:ANUP), Has Just Spent ₹2.9m Buying 63% More Shares

NSEI:ANUP
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Even if it's not a huge purchase, we think it was good to see that Aanal Bhagwati, a The Anup Engineering Limited (NSE:ANUP) insider, recently shelled out ₹2.9m to buy stock, at ₹568 per share. While that isn't the hugest buy, it actually boosted their shareholding by 63%, which is good to see.

See our latest analysis for Anup Engineering

The Last 12 Months Of Insider Transactions At Anup Engineering

In fact, the recent purchase by Aanal Bhagwati was the biggest purchase of Anup Engineering shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹584 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Anup Engineering share holders is that insiders were buying at near the current price.

While Anup Engineering insiders bought shares during the last year, they didn't sell. 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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NSEI:ANUP Insider Trading Volume April 4th 2021

Anup Engineering is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Anup Engineering insiders own 5.4% of the company, worth about ₹310m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Anup Engineering Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Anup Engineering. 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. To help with this, we've discovered 4 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Anup Engineering.

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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