The Chairman of HPL Electric & Power Limited (NSE:HPL), Lalit Seth, Just Bought 2.6% More Shares

Potential HPL Electric & Power Limited (NSE:HPL) shareholders may wish to note that the Chairman, Lalit Seth, recently bought ₹8.8m worth of stock, paying ₹42.99 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.6%.

See our latest analysis for HPL Electric & Power

HPL Electric & Power Insider Transactions Over The Last Year

In fact, the recent purchase by Lalit Seth was the biggest purchase of HPL Electric & Power shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of ₹41.70. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Lalit Seth was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that HPL Electric & Power insiders own 24% of the company, worth about ₹641m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At HPL Electric & Power Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest HPL Electric & Power insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for HPL Electric & Power (2 shouldn't be ignored!) that we believe deserve your full attention.

But note: HPL Electric & Power may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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