Insider Buying: The T.T. Limited (NSE:TTL) Executive Chairman Just Bought ₹479k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Rikhab Jain, the Executive Chairman of T.T. Limited (NSE:TTL) recently shelled out ₹479k to buy stock, at ₹50.39 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for T.T

T.T Insider Transactions Over The Last Year

Earlier in the year, Executive Chairman Rikhab Jain paid ₹38.92 per share in a ₹577k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹53.70. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months T.T insiders were buying shares, but not selling. The average buy price was around ₹43.79. Although they bought at below the recent price of ₹53.70 per share, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

T.T 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that T.T insiders own 63% of the company, worth about ₹734m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About T.T Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest T.T insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. At Simply Wall St, we've found that T.T has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

But note: T.T 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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This article by Simply Wall St is general in nature. 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.
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