Chief Executive Officer K. Ramalingam Just Bought 122% More Shares In Lotus Eye Hospital and Institute Limited (NSE:LOTUSEYE)

Whilst it may not be a huge deal, we thought it was good to see that the Lotus Eye Hospital and Institute Limited (NSE:LOTUSEYE) Chief Executive Officer, K. Ramalingam, recently bought ₹2.0m worth of stock, for ₹31.82 per share. Even though that isn't a massive buy, it did increase their holding by 122%, which is arguably a good sign.

Check out our latest analysis for Lotus Eye Hospital and Institute

Lotus Eye Hospital and Institute Insider Transactions Over The Last Year

Notably, that recent purchase by K. Ramalingam is the biggest insider purchase of Lotus Eye Hospital and Institute shares that we've seen in the last year. That implies that an insider found the current price of ₹32.65 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Lotus Eye Hospital and Institute insiders decided to buy shares at close to current prices.

Lotus Eye Hospital and Institute insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 growing companies that insiders are buying.

Does Lotus Eye Hospital and Institute Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Lotus Eye Hospital and Institute insiders own 69% of the company, worth about ₹457m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Lotus Eye Hospital and Institute Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give 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 Lotus Eye Hospital and Institute insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing 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. When we did our research, we found 2 warning signs for Lotus Eye Hospital and Institute (1 can't be ignored!) that we believe deserve your full attention.

But note: Lotus Eye Hospital and Institute 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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