Insider Buying: The Vital Chemtech Limited (NSE:VITAL) Chairman & MD Just Bought ₹2.8m Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Vital Chemtech Limited (NSE:VITAL) Chairman & MD, Vipul Bhatt, recently bought ₹2.8m worth of stock, for ₹76.85 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 Vital Chemtech

The Last 12 Months Of Insider Transactions At Vital Chemtech

In fact, the recent purchase by Vipul Bhatt was the biggest purchase of Vital Chemtech shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is ₹76.85. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Vital Chemtech share holders is that an insider was buying at near the current price. Vipul Bhatt 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Vital Chemtech insiders own 73% of the company, currently worth about ₹1.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Vital Chemtech Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Vital Chemtech insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vital Chemtech. When we did our research, we found 2 warning signs for Vital Chemtech (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

Of course Vital Chemtech 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.