Ved Agarwal Is The Executive Chairman of Prakash Industries Limited (NSE:PRAKASH) And Just Spent ₹1.1m On Shares

Whilst it may not be a huge deal, we thought it was good to see that the Prakash Industries Limited (NSE:PRAKASH) Executive Chairman, Ved Agarwal, recently bought ₹1.1m worth of stock, for ₹53.50 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Prakash Industries

The Last 12 Months Of Insider Transactions At Prakash Industries

Notably, that recent purchase by Ved Agarwal is the biggest insider purchase of Prakash Industries shares that we've seen in the last year. That means that even when the share price was higher than ₹52.80 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Ved Agarwal was the only individual insider to buy shares in the last twelve months.

Ved Agarwal bought 45.00k shares over the last 12 months at an average price of ₹43.42. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of Prakash Industries

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Prakash Industries insiders own about ₹902m worth of shares. That equates to 9.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Prakash Industries Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Prakash Industries. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prakash Industries. For example - Prakash Industries has 2 warning signs we think you should be aware of.

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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