Sarla Performance Fibers Non-Executive Non-Independent Director Acquires 41% More Stock

Even if it's not a huge purchase, we think it was good to see that Sachin Abhyankar, the Non-Executive Non-Independent Director of Sarla Performance Fibers Limited (NSE:SARLAPOLY) recently shelled out ₹6.9m to buy stock, at ₹84.89 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 41%.

View 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 implies that an insider found the current price of ₹88.04 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Sarla Performance Fibers insiders decided to buy shares at close to current prices.

In the last twelve months Sarla Performance Fibers insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Sarla Performance Fibers

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Sarla Performance Fibers insiders own 12% of the company, worth about ₹907m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Sarla Performance Fibers Tell Us?

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 Sarla Performance Fibers insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. To that end, you should learn about the 3 warning signs we've spotted with Sarla Performance Fibers (including 1 which makes us a bit uncomfortable).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.