Trade Alert: Kishore Gurnani At Veto Switchgears and Cables Limited (NSE:VETO), Has Just Spent ₹4.3m Buying 18% More Shares

Even if it's not a huge purchase, we think it was good to see that Kishore Gurnani, a Veto Switchgears and Cables Limited (NSE:VETO) insider, recently shelled out ₹4.3m to buy stock, at ₹53.61 per share. That purchase might not be huge but it did increase their holding by 18%.

See our latest analysis for Veto Switchgears and Cables

Veto Switchgears and Cables Insider Transactions Over The Last Year

In fact, the recent purchase by Kishore Gurnani was the biggest purchase of Veto Switchgears and Cables shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹71.75 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Veto Switchgears and Cables share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Kishore Gurnani.

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

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 of Veto Switchgears and Cables

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 Veto Switchgears and Cables insiders own 19% of the company, worth about ₹255m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Veto Switchgears and Cables Tell Us?

It's certainly positive 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 Veto Switchgears and Cables. 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. Case in point: We've spotted 3 warning signs for Veto Switchgears and Cables you should be aware of, and 1 of them is concerning.

But note: Veto Switchgears and Cables 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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This article by Simply Wall St is general in nature. 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.
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