Trade Alert: The Chairman of the Board & MD Of Alphageo (India) Limited (NSE:ALPHAGEO), Dinesh Alla, Has Just Spent ₹4.3m Buying 1.2% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Alphageo (India) Limited (NSE:ALPHAGEO) Chairman of the Board & MD, Dinesh Alla, recently bought ₹4.3m worth of stock, for ₹200 per share. However, it only increased their shares held by 1.2%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Alphageo (India)

Alphageo (India) Insider Transactions Over The Last Year

In fact, the recent purchase by Dinesh Alla was the biggest purchase of Alphageo (India) shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹201 per share to be enticing. 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. The good news for Alphageo (India) share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Dinesh Alla.

Dinesh Alla purchased 31.50k shares over the year. The average price per share was ₹141. 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!

Alphageo (India) is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Alphageo (India) Boast High 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. Alphageo (India) insiders own 45% of the company, currently worth about ₹564m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Alphageo (India) Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Alphageo (India) insiders are well aligned, and quite possibly think the share price is too low. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Alphageo (India) is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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