Subbarao Vallabhaneni Buys 97% More KCP Shares

Potential The KCP Limited (NSE:KCP) shareholders may wish to note that insider Subbarao Vallabhaneni recently bought ₹26m worth of stock, paying ₹190 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 97%, potentially signalling some real optimism.

View our latest analysis for KCP

The Last 12 Months Of Insider Transactions At KCP

Notably, that recent purchase by Subbarao Vallabhaneni is the biggest insider purchase of KCP shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is ₹190. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for KCP share holders is that insiders were buying at near the current price. We note that Subbarao Vallabhaneni was also the biggest seller.

Over the last year, we can see that insiders have bought 221.63k shares worth ₹42m. On the other hand they divested 50.00k shares, for ₹9.0m. Overall, KCP insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does KCP Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that KCP insiders own 17% of the company, worth about ₹4.3b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The KCP Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest KCP insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of KCP.

Of course KCP 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.

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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.