Sanjay Rathi Is The MD & Director of Laxmi Cotspin Limited (NSE:LAXMICOT) And They Just Picked Up 9.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Laxmi Cotspin Limited (NSE:LAXMICOT) MD & Director, Sanjay Rathi, recently bought ₹238k worth of stock, for ₹9.92 per share. However, it only increased their shares held by 9.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Laxmi Cotspin

The Last 12 Months Of Insider Transactions At Laxmi Cotspin

Notably, that recent purchase by Sanjay Rathi is the biggest insider purchase of Laxmi Cotspin shares that we've seen in the last year. That means that even when the share price was higher than ₹9.75 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Sanjay Rathi.

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!

Laxmi Cotspin is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Laxmi Cotspin

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Laxmi Cotspin insiders own about ₹43m worth of shares. That equates to 26% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Laxmi Cotspin Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Laxmi Cotspin shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Laxmi Cotspin. Every company has risks, and we've spotted 3 warning signs for Laxmi Cotspin you should know about.

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, but not derivative transactions.

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