MD & Executive Director of Kanani Industries Picks Up 5.1% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Kanani Industries Limited (NSE:KANANIIND) MD & Executive Director, Harshil Kanani, recently bought ₹6.4m worth of stock, for ₹2.62 per share. Although the purchase is not a big one, increasing their shareholding by only 5.1%, it can be interpreted as a good sign.

View our latest analysis for Kanani Industries

The Last 12 Months Of Insider Transactions At Kanani Industries

In fact, the recent purchase by MD & Executive Director Harshil Kanani was not their only trade of Kanani Industries shares this year. They previously made a sale of -₹28m worth of shares at a price of ₹3.06 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹2.61. So it may not tell us anything about how insiders feel about the current share price.

Harshil Kanani ditched 31.94m shares over the year. The average price per share was ₹3.39. 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!

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Insider Ownership Of Kanani Industries

For a common shareholder, it is worth checking how many shares are held by company 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. Kanani Industries insiders own about ₹236m worth of shares (which is 46% 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 Kanani Industries Insiders?

The insider sales have outweighed the insider buying, at Kanani Industries, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that Kanani Industries is showing 4 warning signs in our investment analysis, and 2 of those are significant...

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.