L.G. Balakrishnan & Bros Insiders Added ₹452.2m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for L.G. Balakrishnan & Bros

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

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman Balakrishnan Vijayakumar bought ₹258m worth of shares at a price of ₹1,292 per share. So it's clear an insider wanted to buy, at around the current price, which is ₹1,336. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. 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.

Insider Ownership Of L.G. Balakrishnan & Bros

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. L.G. Balakrishnan & Bros insiders own 25% of the company, currently worth about ₹11b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The L.G. Balakrishnan & Bros Insider Transactions Indicate?

The fact that there have been no L.G. Balakrishnan & Bros insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like L.G. Balakrishnan & Bros insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for L.G. Balakrishnan & Bros you should be aware of.

Of course L.G. Balakrishnan & Bros 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 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.