Trade Alert: The Executive Chairman & MD Of Pearl Polymers Limited (NSE:PEARLPOLY), R. Seth, Has Just Spent ₹1.5m Buying 7.5% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Pearl Polymers Limited (NSE:PEARLPOLY) Executive Chairman & MD, R. Seth, recently bought ₹1.5m worth of stock, for ₹17.00 per share. However, it only increased their shares held by 7.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Pearl Polymers

Pearl Polymers Insider Transactions Over The Last Year

In fact, the recent purchase by R. Seth was the biggest purchase of Pearl Polymers 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 ₹20.60 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 Pearl Polymers share holders is that an insider was buying at near the current price. R. Seth was the only individual insider to buy shares in the last twelve months.

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!

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).

Does Pearl Polymers 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. We usually like to see fairly high levels of insider ownership. It's great to see that Pearl Polymers insiders own 45% of the company, worth about ₹151m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Pearl Polymers Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Pearl Polymers. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pearl Polymers. To that end, you should learn about the 3 warning signs we've spotted with Pearl Polymers (including 2 which shouldn't be ignored).

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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