Sachin Abhyankar Bought 43% More Shares In Sarla Performance Fibers

Whilst it may not be a huge deal, we thought it was good to see that the Sarla Performance Fibers Limited (NSE:SARLAPOLY) Non-Executive Non-Independent Director, Sachin Abhyankar, recently bought ₹5.3m worth of stock, for ₹88.91 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 43%.

See our latest analysis for Sarla Performance Fibers

Sarla Performance Fibers Insider Transactions Over The Last Year

Notably, that recent purchase by Sachin Abhyankar is the biggest insider purchase of Sarla Performance Fibers shares that we've seen in the last year. That means that even when the share price was higher than ₹85.28 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Sarla Performance Fibers insiders bought shares during the last year, they didn't sell. The average buy price was around ₹79.20. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that Sarla Performance Fibers insiders own 13% of the company, worth about ₹921m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sarla Performance Fibers 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Sarla Performance Fibers. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Sarla Performance Fibers and we suggest you have a look.

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.