The Founder & Chairman of CL Educate Limited (NSE:CLEDUCATE), Satya Ramakrishnan, Just Bought A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Satya Ramakrishnan, the Founder & Chairman of CL Educate Limited (NSE:CLEDUCATE) recently shelled out ₹77k to buy stock, at ₹76.65 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.

See our latest analysis for CL Educate

The Last 12 Months Of Insider Transactions At CL Educate

Founder & Chairman Satya Ramakrishnan previously made an even bigger purchase of ₹1.1m worth of shares at a price of ₹48.36 per share. Even though the purchase was made at a significantly lower price than the recent price (₹78.85), we still think insider buying is a positive. 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.

While CL Educate insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that CL Educate insiders own 47% of the company, worth about ₹529m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The CL Educate Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest CL Educate insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. Every company has risks, and we've spotted 4 warning signs for CL Educate (of which 1 is a bit concerning!) you should know about.

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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