The Chairman & MD of Macpower CNC Machines Limited (NSE:MACPOWER), Rupesh Kumar Mehta, Just Bought 3.0% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Macpower CNC Machines Limited (NSE:MACPOWER) Chairman & MD, Rupesh Kumar Mehta, recently bought ₹136k worth of stock, for ₹63.13 per share. However, it only increased their shares held by 3.0%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Macpower CNC Machines

Macpower CNC Machines Insider Transactions Over The Last Year

Chairman & MD Rupesh Kumar Mehta previously made an even bigger purchase of ₹407k worth of shares at a price of ₹77.48 per share. That means that an insider was happy to buy shares at above the current price of ₹66.15. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Rupesh Kumar Mehta was the only individual insider to buy during the last year.

Rupesh Kumar Mehta bought 16.11k shares over the last 12 months at an average price of ₹66.93. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Macpower CNC Machines insiders own about ₹231m worth of shares. That equates to 35% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Macpower CNC Machines Insiders?

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 Macpower CNC Machines. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Macpower CNC Machines. For example, Macpower CNC Machines has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

Of course Macpower CNC Machines 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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