Whole Time Director Aruna Doshi Just Bought A Handful Of Shares In Rajdarshan Industries Limited (NSE:ARENTERP)

Whilst it may not be a huge deal, we thought it was good to see that the Rajdarshan Industries Limited (NSE:ARENTERP) Whole Time Director, Aruna Doshi, recently bought ₹107k worth of stock, for ₹10.64 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Rajdarshan Industries

Rajdarshan Industries Insider Transactions Over The Last Year

Earlier in the year, Whole Time Director Aruna Doshi paid ₹11.31 per share in a ₹116k purchase. That means that an insider was happy to buy shares at above the current price of ₹11.25. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Aruna Doshi was the only individual insider to buy shares in the last twelve months.

Aruna Doshi bought 59.13k shares over the last 12 months at an average price of ₹11.03. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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. Rajdarshan Industries insiders own about ₹23m worth of shares (which is 68% 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 Does This Data Suggest About Rajdarshan Industries Insiders?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Rajdarshan Industries insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 3 warning signs for Rajdarshan Industries you should be aware of.

But note: Rajdarshan Industries 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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