The CEO, MD & Director of Max Ventures and Industries Limited (NSE:MAXVIL), Sahil Vachani, Just Bought 16% More Shares

Even if it's not a huge purchase, we think it was good to see that Sahil Vachani, the CEO, MD & Director of Max Ventures and Industries Limited (NSE:MAXVIL) recently shelled out ₹440k to buy stock, at ₹43.97 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 16%.

Check out our latest analysis for Max Ventures and Industries

The Last 12 Months Of Insider Transactions At Max Ventures and Industries

The Founder & Chairman of the Board Analjit Singh made the biggest insider purchase in the last 12 months. That single transaction was for ₹12m worth of shares at a price of ₹52.93 each. That means that an insider was happy to buy shares at above the current price of ₹46.20. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.

While Max Ventures and Industries insiders bought shares during the last year, they didn't sell. Their average price was about ₹44.90. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Max Ventures and Industries insiders own 5.6% of the company, worth about ₹380m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Max Ventures and Industries Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Max Ventures and Industries 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. For example, Max Ventures and Industries has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course Max Ventures and 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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