Insider Buying: The CL Educate Limited (NSE:CLEDUCATE) Founder & Chairman Just Bought ₹70k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the CL Educate Limited (NSE:CLEDUCATE) Founder & Chairman, Satya Ramakrishnan, recently bought ₹70k worth of stock, for ₹69.51 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.

View our latest analysis for CL Educate

CL Educate Insider Transactions Over The Last Year

Earlier in the year, Founder & Chairman Satya Ramakrishnan paid ₹48.36 per share in a ₹1.1m purchase. We do like to see buying, but this purchase was made at well below the current price of ₹68.55. 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 CL Educate 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!

CL Educate is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of CL Educate

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. CL Educate insiders own 47% of the company, currently worth about ₹454m 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 CL Educate Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about CL Educate. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CL Educate. Our analysis shows 3 warning signs for CL Educate (1 is a bit concerning!) and we strongly recommend you look at these before investing.

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, 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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