Rajesh Mittal Is The Chairman & MD of Greenply Industries Limited (NSE:GREENPLY) And They Just Picked Up 24% More Shares

Even if it's not a huge purchase, we think it was good to see that Rajesh Mittal, the Chairman & MD of Greenply Industries Limited (NSE:GREENPLY) recently shelled out ₹2.5m to buy stock, at ₹104 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.

See our latest analysis for Greenply Industries

The Last 12 Months Of Insider Transactions At Greenply Industries

Notably, that recent purchase by Rajesh Mittal is the biggest insider purchase of Greenply Industries shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹99.40). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Greenply Industries insiders were buying shares, but not selling. 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!

Greenply Industries 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.

Insider Ownership of Greenply Industries

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. It appears that Greenply Industries insiders own 7.5% of the company, worth about ₹912m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Greenply Industries Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Greenply Industries. Nice! 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. While conducting our analysis, we found that Greenply Industries has 3 warning signs and it would be unwise to ignore these.

Of course Greenply Industries 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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