Abhishek Lath Buys Handful Of Shares In Le Merite Exports

Even if it's not a huge purchase, we think it was good to see that Abhishek Lath, the MD, CFO & Director of Le Merite Exports Limited (NSE:LEMERITE) recently shelled out ₹4.4m to buy stock, at ₹181 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Le Merite Exports

The Last 12 Months Of Insider Transactions At Le Merite Exports

In fact, the recent purchase by Abhishek Lath was the biggest purchase of Le Merite Exports shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of ₹189. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Le Merite Exports insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Abhishek Lath.

Abhishek Lath purchased 75.20k shares over the year. The average price per share was ₹96.85. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Le Merite Exports insiders own 73% of the company, currently worth about ₹3.2b based on the recent share price. 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 Does This Data Suggest About Le Merite Exports Insiders?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Le Merite Exports insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. Every company has risks, and we've spotted 4 warning signs for Le Merite Exports (of which 2 are concerning!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.