Insider Buying: Gensol Engineering Co-Founder Bought ₹10m Of Shares

Investors who take an interest in Gensol Engineering Limited (NSE:GENSOL) should definitely note that the Co-Founder, Anmol Jaggi, recently paid ₹851 per share to buy ₹10m worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Gensol Engineering

The Last 12 Months Of Insider Transactions At Gensol Engineering

In fact, the recent purchase by Co-Founder Anmol Jaggi was not their only acquisition of Gensol Engineering shares this year. They previously made an even bigger purchase of ₹48m worth of shares at a price of ₹885 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹834). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Anmol Jaggi was the only individual insider to buy shares in the last twelve months.

Anmol Jaggi purchased 65.95k shares over the year. The average price per share was ₹879. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Gensol Engineering is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Gensol Engineering Boast High 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. Gensol Engineering insiders own about ₹15b worth of shares (which is 46% of the company). 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 Gensol Engineering Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Gensol Engineering insiders are well aligned, and quite possibly think the share price is too low. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gensol Engineering. You'd be interested to know, that we found 1 warning sign for Gensol Engineering and we suggest you have a look.

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 of direct interests only, but not derivative transactions or indirect interests.

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