Insider Spends ₹8.9m Buying More Shares In Privi Speciality Chemicals

Investors who take an interest in Privi Speciality Chemicals Limited (NSE:PRIVISCL) should definitely note that the Independent Non-Executive Director, Anurag Surana, recently paid ₹1,782 per share to buy ₹8.9m worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 33%.

Check out our latest analysis for Privi Speciality Chemicals

The Last 12 Months Of Insider Transactions At Privi Speciality Chemicals

Notably, that recent purchase by Anurag Surana is the biggest insider purchase of Privi Speciality Chemicals shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is ₹1,789. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Privi Speciality Chemicals share holders is that an insider was buying at near the current price. Anurag Surana was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Privi Speciality Chemicals insiders own about ₹21b worth of shares (which is 30% 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 Privi Speciality Chemicals Insider Transactions Indicate?

It is good 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 Privi Speciality Chemicals. That's what I like to see! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Privi Speciality Chemicals and understanding it should be part of your investment process.

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 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.