Linc Insiders Are Down ₹3.1m But Regain Some Losses

Insiders who purchased ₹25.1m worth of Linc Limited (NSE:LINC) shares over the past year recouped some of their losses after price gained 15% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled ₹3.1m since the time of purchase.

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 Linc

Linc Insider Transactions Over The Last Year

The MD & Chairman, Deepak Jalan, made the biggest insider sale in the last 12 months. That single transaction was for ₹5.4m worth of shares at a price of ₹721 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹596. So it may not shed much light on insider confidence at current levels. Deepak Jalan was the only individual insider to sell shares in the last twelve months. Notably Deepak Jalan was also the biggest buyer, having purchased ₹25m worth of shares.

Happily, we note that in the last year insiders paid ₹25m for 36.84k shares. But insiders sold 15.00k shares worth ₹11m. Overall, Linc insiders were net buyers during the last year. 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 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.

Insiders At Linc Have Bought Stock Recently

There was some insider buying at Linc over the last quarter. Insiders purchased ₹2.2m worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

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. We usually like to see fairly high levels of insider ownership. It's great to see that Linc insiders own 55% of the company, worth about ₹4.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Linc Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Linc. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Linc that deserve your attention before buying any shares.

But note: Linc 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.