Ajay Bansal Spends ₹7.1m On Hi-Tech Pipes Stock

Whilst it may not be a huge deal, we thought it was good to see that the Hi-Tech Pipes Limited (NSE:HITECH) Chairman & MD, Ajay Bansal, recently bought ₹7.1m worth of stock, for ₹125 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.

View our latest analysis for Hi-Tech Pipes

Hi-Tech Pipes Insider Transactions Over The Last Year

In fact, the recent purchase by Chairman & MD Ajay Bansal was not their only trade of Hi-Tech Pipes shares this year. They previously made a sale of -₹87m worth of shares at a price of ₹145 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹131. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid ₹8.4m for 67.38k shares. But insiders sold 600.00k shares worth ₹87m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Hi-Tech Pipes insiders own about ₹9.4b worth of shares (which is 45% of the company). 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 Do The Hi-Tech Pipes Insider Transactions Indicate?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Hi-Tech Pipes has 3 warning signs (and 2 which are concerning) we think you should know about.

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 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.