Trade Alert: The Chairman & MD Of West Coast Paper Mills Limited (NSE:WSTCSTPAPR), Shree Bangur, Has Just Spent ₹3.9m Buying A Few More Shares

Whilst it may not be a huge deal, we thought it was good to see that the West Coast Paper Mills Limited (NSE:WSTCSTPAPR) Chairman & MD, Shree Bangur, recently bought ₹3.9m worth of stock, for ₹261 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 West Coast Paper Mills

West Coast Paper Mills Insider Transactions Over The Last Year

Notably, that recent purchase by Shree Bangur is the biggest insider purchase of West Coast Paper Mills shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹244). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

West Coast Paper Mills insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around ₹164. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

West Coast Paper Mills is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of West Coast Paper Mills shares, worth about ₹2.3b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At West Coast Paper Mills Tell Us?

It's certainly positive to see the recent insider purchases. 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 West Coast Paper Mills. Looks promising! While we like knowing 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. While conducting our analysis, we found that West Coast Paper Mills has 4 warning signs and it would be unwise to ignore these.

But note: West Coast Paper Mills 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. 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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