A ₹6.9b market cap addition is just what Privi Speciality Chemicals Limited (NSE:PRIVISCL) insiders like to see after purchasing stock worth ₹468m

Insiders who bought Privi Speciality Chemicals Limited (NSE:PRIVISCL) stock in the last 12 months were richly rewarded last week. The company's market value increased by ₹6.9b as a result of the stock's 9.4% gain over the same period. As a result, the stock they originally bought for ₹468m is now worth ₹3.1b.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Privi Speciality Chemicals

Privi Speciality Chemicals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Vijaykumar Doppalapudi for ₹87m worth of shares, at about ₹349 per share. We do like to see buying, but this purchase was made at well below the current price of ₹1,995. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 1.56m shares worth ₹468m. But insiders sold 25.00k shares worth ₹8.7m. In the last twelve months there was more buying than selling by Privi Speciality Chemicals insiders. They paid about ₹300 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Privi Speciality Chemicals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Privi Speciality Chemicals

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Privi Speciality Chemicals insiders own about ₹24b worth of shares (which is 30% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Privi Speciality Chemicals Insider Transactions Indicate?

The fact that there have been no Privi Speciality Chemicals 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 Privi Speciality Chemicals insiders think the business has merit. 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. Case in point: We've spotted 1 warning sign for Privi Speciality Chemicals you should be aware of.

But note: Privi Speciality Chemicals 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, but not derivative transactions.

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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.