L.G. Balakrishnan & Bros Executive Chairman Acquires 5.8% More Stock

L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Balakrishnan Vijayakumar, recently bought a whopping ₹258m worth of stock, at a price of ₹1,292. While that only increased their holding size by 5.8%, it is still a big swing by our standards.

See our latest analysis for L.G. Balakrishnan & Bros

L.G. Balakrishnan & Bros Insider Transactions Over The Last Year

Notably, that recent purchase by Balakrishnan Vijayakumar is the biggest insider purchase of L.G. Balakrishnan & Bros shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of ₹1,361. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months L.G. Balakrishnan & Bros insiders were buying shares, but not selling. 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!

L.G. Balakrishnan & Bros 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 L.G. Balakrishnan & Bros Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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's great to see that L.G. Balakrishnan & Bros insiders own 24% of the company, worth about ₹10b. 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 Does This Data Suggest About L.G. Balakrishnan & Bros Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest L.G. Balakrishnan & Bros insiders are well aligned, and quite possibly think the share price is too low. 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. In terms of investment risks, we've identified 1 warning sign with L.G. Balakrishnan & Bros and understanding it should be part of your investment process.

But note: L.G. Balakrishnan & Bros 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 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.