MD, CEO & Executive Director Amin Rayani Just Bought 4.1% More Shares In Panama Petrochem Limited (NSE:PANAMAPET)

Whilst it may not be a huge deal, we thought it was good to see that the Panama Petrochem Limited (NSE:PANAMAPET) MD, CEO & Executive Director , Amin Rayani, recently bought ₹7.2m worth of stock, for ₹66.35 per share. However, it only increased their shares held by 4.1%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Panama Petrochem

Panama Petrochem Insider Transactions Over The Last Year

In fact, the recent purchase by MD, CEO & Executive Director Amin Rayani was not their only acquisition of Panama Petrochem shares this year. Earlier in the year, they paid ₹54.80 per share in a ₹12m purchase. We do like to see buying, but this purchase was made at well below the current price of ₹72.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Panama Petrochem insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

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. It's great to see that Panama Petrochem insiders own 47% of the company, worth about ₹2.1b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Panama Petrochem Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Panama Petrochem insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Panama Petrochem.

Of course Panama Petrochem 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.

When trading Panama Petrochem or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.