Trade Alert: Rajani Seshadri At Grindwell Norton Limited (NSE:GRINDWELL), Has Just Spent ₹977k Buying 3.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that Rajani Seshadri, who is a company insider, recently bought ₹977k worth of stock, for ₹814 per share. Although the purchase is not a big one, increasing their shareholding by only 3.5%, it can be interpreted as a good sign.

See our latest analysis for Grindwell Norton

Grindwell Norton Insider Transactions Over The Last Year

Notably, that recent purchase by insider Rajani Seshadri was not the only time they bought Grindwell Norton shares this year. They previously made an even bigger purchase of ₹3.5m worth of shares at a price of ₹549 per share. We do like to see buying, but this purchase was made at well below the current price of ₹871. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Rajani Seshadri purchased 16.20k shares over the year. The average price per share was ₹587. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Grindwell Norton 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.

Does Grindwell Norton 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Grindwell Norton insiders own about ₹8.3b worth of shares (which is 8.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Grindwell Norton Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Grindwell Norton. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Grindwell Norton. At Simply Wall St, we found 1 warning sign for Grindwell Norton that deserve your attention before buying any shares.

Of course Grindwell Norton may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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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