Insiders Give Up ₹5.4m As Winsol Engineers Stock Drops To ₹173

The recent 11% drop in Winsol Engineers Limited's (NSE:WINSOL) stock could come as a blow to insiders who purchased ₹14.3m worth of stock at an average buy price of ₹276 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only ₹8.97m.

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.

See our latest analysis for Winsol Engineers

The Last 12 Months Of Insider Transactions At Winsol Engineers

In the last twelve months, the biggest single purchase by an insider was when MD & Chairman Ramesh Pindariya bought ₹14m worth of shares at a price of ₹276 per share. That means that an insider was happy to buy shares at above the current price of ₹173. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Ramesh Pindariya was also the biggest seller.

In the last twelve months insiders purchased 52.00k shares for ₹14m. On the other hand they divested 400.00 shares, for ₹116k. Overall, Winsol Engineers insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Winsol Engineers Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Winsol Engineers, over the last three months. In fact, two insiders bought ₹14m worth of shares. But we did see MD & Chairman Ramesh Pindariya sell shares worth ₹116k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Winsol Engineers

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Winsol Engineers insiders own about ₹1.5b worth of shares (which is 73% of the company). 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 Do The Winsol Engineers Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Winsol Engineers. One for the watchlist, at least! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Winsol Engineers is showing 5 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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 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.