With Gokul Refoils & Solvent Up 10%, Insider Buyers Count Their Returns

Gokul Refoils & Solvent Limited (NSE:GOKUL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a ₹448m addition to the company’s market value. As a result, their original purchase of ₹33.7m worth of stock is now worth ₹37.1m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Gokul Refoils & Solvent

The Last 12 Months Of Insider Transactions At Gokul Refoils & Solvent

Over the last year, we can see that the biggest insider purchase was by Chairman Balvantsinh Rajput for ₹21m worth of shares, at about ₹46.50 per share. That means that an insider was happy to buy shares at around the current price of ₹49.48. 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. Happily, the Gokul Refoils & Solvent insider decided to buy shares at close to current prices. Balvantsinh Rajput was the only individual insider to buy shares in the last twelve months.

Balvantsinh Rajput bought 750.43k shares over the last 12 months at an average price of ₹44.85. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Gokul Refoils & Solvent insiders own 63% of the company, currently worth about ₹3.1b 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.

So What Does This Data Suggest About Gokul Refoils & Solvent Insiders?

It doesn't really mean much that no insider has traded Gokul Refoils & Solvent shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Gokul Refoils & Solvent insiders think the business has merit. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 5 warning signs for Gokul Refoils & Solvent (2 are concerning!) and we strongly recommend you look at these before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.