Nirmal Shah Buys Handful Of Shares In Chembond Chemicals

Whilst it may not be a huge deal, we thought it was good to see that the Chembond Chemicals Limited (NSE:CHEMBOND) Vice Chairman & MD, Nirmal Shah, recently bought ₹8.0m worth of stock, for ₹628 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Chembond Chemicals

Chembond Chemicals Insider Transactions Over The Last Year

Notably, that recent purchase by Nirmal Shah is the biggest insider purchase of Chembond Chemicals shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of ₹615. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 13.40k shares worth ₹8.3m. But insiders sold 12.80k shares worth ₹8.0m. In the last twelve months there was more buying than selling by Chembond Chemicals insiders. 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!

Chembond Chemicals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Chembond Chemicals

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Chembond Chemicals insiders own 60% of the company, worth about ₹5.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Chembond Chemicals Tell Us?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Chembond Chemicals insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. You'd be interested to know, that we found 5 warning signs for Chembond Chemicals and we suggest you have a look.

Of course Chembond Chemicals may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.