The Chief Financial Officer of Spectrum Electrical Industries Limited (NSE:SPECTRUM), Pankaj Rote, Just Bought A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Spectrum Electrical Industries Limited (NSE:SPECTRUM) Chief Financial Officer, Pankaj Rote, recently bought ₹1.4m worth of stock, for ₹276 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Spectrum Electrical Industries

The Last 12 Months Of Insider Transactions At Spectrum Electrical Industries

Notably, that recent purchase by Pankaj Rote is the biggest insider purchase of Spectrum Electrical Industries shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of ₹324. 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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's great to see that Spectrum Electrical Industries insiders own 65% of the company, worth about ₹3.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Spectrum Electrical Industries Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Spectrum Electrical Industries. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spectrum Electrical Industries. For instance, we've identified 3 warning signs for Spectrum Electrical Industries (1 shouldn't be ignored) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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