Chairman Dwarka Mangal Just Bought A Handful Of Shares In Lagnam Spintex Limited (NSE:LAGNAM)

Whilst it may not be a huge deal, we thought it was good to see that the Lagnam Spintex Limited (NSE:LAGNAM) Chairman, Dwarka Mangal, recently bought ₹144k worth of stock, for ₹9.63 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 Lagnam Spintex

The Last 12 Months Of Insider Transactions At Lagnam Spintex

Notably, that recent purchase by Dwarka Mangal is the biggest insider purchase of Lagnam Spintex shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of ₹11.90. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Lagnam Spintex insider decided to buy shares at close to current prices. Dwarka Mangal was the only individual insider to buy shares in the last twelve months.

Dwarka Mangal purchased 36.00k shares over the year. The average price per share was ₹9.31. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Insider Ownership of Lagnam Spintex

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. It's great to see that Lagnam Spintex insiders own 47% of the company, worth about ₹99m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Lagnam Spintex Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Lagnam Spintex insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Lagnam Spintex (3 can't be ignored!) and we strongly recommend you look at these before investing.

But note: Lagnam Spintex 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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