Integrated Personnel Services Stock Down 14% But Insiders Still In ₹102m Profit

Integrated Personnel Services Limited (NSE:IPSL) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. After accounting for the recent loss, the ₹16.2m worth of shares they purchased is now worth ₹118.4m, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Integrated Personnel Services

Integrated Personnel Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD & Director Tarang Goyal bought ₹10m worth of shares at a price of ₹20.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹148. 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.

While Integrated Personnel Services insiders bought shares during the last year, they didn't sell. 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!

Integrated Personnel Services is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Integrated Personnel Services

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Integrated Personnel Services insiders own about ₹865m worth of shares (which is 81% of the company). 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 Integrated Personnel Services Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Integrated Personnel Services shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Integrated Personnel Services insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. To help with this, we've discovered 3 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Integrated Personnel Services.

But note: Integrated Personnel Services 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com