Insider Spends ₹19m Buying More Shares In United Polyfab Gujarat

Potential United Polyfab Gujarat Limited (NSE:UNITEDPOLY) shareholders may wish to note that the Chairman of the Board & MD, Gagan Mittal, recently bought ₹19m worth of stock, paying ₹140 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.7%.

Check out our latest analysis for United Polyfab Gujarat

The Last 12 Months Of Insider Transactions At United Polyfab Gujarat

In fact, the recent purchase by Gagan Mittal was the biggest purchase of United Polyfab Gujarat 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 ₹142. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the United Polyfab Gujarat insider decided to buy shares at close to current prices. Gagan Mittal was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

United Polyfab Gujarat is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. United Polyfab Gujarat insiders own about ₹1.3b worth of shares. That equates to 39% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About United Polyfab Gujarat Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest United Polyfab Gujarat insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, United Polyfab Gujarat has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.

But note: United Polyfab Gujarat 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 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.