The Independent Director of Fairchem Speciality Limited (NSE:FAIRCHEM), Anurag Surana, Just Bought 400% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Fairchem Speciality Limited (NSE:FAIRCHEM) Independent Director, Anurag Surana, recently bought ₹3.5m worth of stock, for ₹581 per share. While that isn't the hugest buy, it actually boosted their shareholding by 400%, which is good to see.

See our latest analysis for Fairchem Speciality

The Last 12 Months Of Insider Transactions At Fairchem Speciality

In fact, the recent purchase by Anurag Surana was the biggest purchase of Fairchem Speciality shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹553 (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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Fairchem Speciality insiders bought shares during the last year, they didn't sell. 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 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).

Insider Ownership of Fairchem Speciality

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 27% of Fairchem Speciality shares, worth about ₹5.8b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Fairchem Speciality Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Fairchem Speciality. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Fairchem Speciality.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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