Insider Buying: The Prime Securities Limited (NSE:PRIMESECU) Non-Executive Non-Independent Director and CEO & CIO of Prime Research & Advisory Limited Just Bought 1.9% More Shares

By
Simply Wall St
Published
November 27, 2020
NSEI:PRIMESECU

Even if it's not a huge purchase, we think it was good to see that Akshay Gupta, the Non-Executive Non-Independent Director and CEO & CIO of Prime Research & Advisory Limited of Prime Securities Limited (NSE:PRIMESECU) recently shelled out ₹378k to buy stock, at ₹41.94 per share. Although the purchase is not a big one, increasing their shareholding by only 1.9%, it can be interpreted as a good sign.

Check out our latest analysis for Prime Securities

Prime Securities Insider Transactions Over The Last Year

Earlier in the year, Non-Executive Non-Independent Director and CEO & CIO of Prime Research & Advisory Limited Akshay Gupta paid ₹25.59 per share in a ₹1.4m purchase. Even though the purchase was made at a significantly lower price than the recent price (₹50.60), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Akshay Gupta purchased 65.15k shares over the year. The average price per share was ₹27.85. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NSEI:PRIMESECU Insider Trading Volume November 28th 2020

Prime Securities 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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Prime Securities insiders own about ₹517m worth of shares. That equates to 38% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Prime Securities Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Prime Securities. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prime Securities. You'd be interested to know, that we found 4 warning signs for Prime Securities and we suggest you have a look.

But note: Prime Securities 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.

Promoted
If you’re looking to trade Prime Securities, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.