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.
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!
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.
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.
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