Privi Speciality Chemicals Insider Ups Holding By 33% During Year

Insiders were net buyers of Privi Speciality Chemicals Limited's (NSE:PRIVISCL ) stock during the past year. That is, insiders bought more stock than they sold.

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.

The Last 12 Months Of Insider Transactions At Privi Speciality Chemicals

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Anurag Surana bought ₹8.9m worth of shares at a price of ₹1,782 per share. That means that even when the share price was higher than ₹1,705 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Anurag Surana was the only individual insider to buy during the last year.

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!

See our latest analysis for Privi Speciality Chemicals

Privi Speciality Chemicals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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 ₹20b worth of shares (which is 30% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Privi Speciality Chemicals Tell Us?

It doesn't really mean much that no insider has traded Privi Speciality Chemicals shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Privi Speciality Chemicals insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Privi Speciality Chemicals has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course Privi Speciality Chemicals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.