Several Insiders Invested In Paragon Fine And Speciality Chemical Flagging Positive News

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Paragon Fine And Speciality Chemical Limited's (NSE:PARAGON) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Paragon Fine And Speciality Chemical

Paragon Fine And Speciality Chemical Insider Transactions Over The Last Year

The Whole Time Director Kishorkumar Patolia made the biggest insider purchase in the last 12 months. That single transaction was for ₹6.9m worth of shares at a price of ₹114 each. That means that an insider was happy to buy shares at above the current price of ₹108. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Paragon Fine And Speciality Chemical insiders bought shares during the last year, they didn't sell. 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!

Paragon Fine And Speciality Chemical is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Paragon Fine And Speciality Chemical

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Paragon Fine And Speciality Chemical insiders own about ₹1.4b worth of shares (which is 66% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Paragon Fine And Speciality Chemical Insider Transactions Indicate?

The fact that there have been no Paragon Fine And Speciality Chemical insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Paragon Fine And Speciality Chemical insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Paragon Fine And Speciality Chemical. For instance, we've identified 2 warning signs for Paragon Fine And Speciality Chemical (1 can't be ignored) you should be aware of.

But note: Paragon Fine And Speciality Chemical may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.