Stock Analysis

Trade Alert: The Chairperson & MD Of The KCP Limited (NSE:KCP), V. L. Dutt, Has Just Spent ₹15m Buying 1.8% More Shares

NSEI:KCP
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Investors who take an interest in The KCP Limited (NSE:KCP) should definitely note that the Chairperson & MD, V. L. Dutt, recently paid ₹74.97 per share to buy ₹15m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.8%.

Check out our latest analysis for KCP

KCP Insider Transactions Over The Last Year

In fact, the recent purchase by V. L. Dutt was the biggest purchase of KCP shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of ₹76.20 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. The good news for KCP share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid ₹19m for 267.61k shares. On the other hand they divested 350.00k shares, for ₹16m. In the last twelve months there was more buying than selling by KCP insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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NSEI:KCP Insider Trading Volume February 14th 2021

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 KCP 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. A high insider ownership often makes company leadership more mindful of shareholder interests. KCP insiders own about ₹2.4b worth of shares. That equates to 24% of the company. 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 Does This Data Suggest About KCP Insiders?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about KCP. One for the watchlist, at least! 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. At Simply Wall St, we've found that KCP has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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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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