Insider Buys Additional ₹20m In Gensol Engineering Stock

Potential Gensol Engineering Limited (NSE:GENSOL) shareholders may wish to note that the Co-Founder, Anmol Jaggi, recently bought ₹20m worth of stock, paying ₹762 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Gensol Engineering

Gensol Engineering Insider Transactions Over The Last Year

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 ₹815). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The only individual insider to buy over the last year was Anmol Jaggi.

Anmol Jaggi purchased 92.45k shares over the year. The average price per share was ₹845. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Gensol Engineering is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Gensol 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. We usually like to see fairly high levels of insider ownership. Gensol Engineering insiders own about ₹14b worth of shares (which is 45% 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 the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Gensol Engineering. One for the watchlist, at least! 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 2 warning signs for Gensol Engineering and we suggest you have a look.

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

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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.