Trade Alert: The CEO & Whole Time Director Of Pritish Nandy Communications Ltd (NSE:PNC), Pallab Bhattacharya, Has Just Spent ₹79k Buying 4.1% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Pritish Nandy Communications Ltd (NSE:PNC) CEO & Whole Time Director, Pallab Bhattacharya, recently bought ₹79k worth of stock, for ₹19.86 per share. Although the purchase is not a big one, increasing their shareholding by only 4.1%, it can be interpreted as a good sign.

View our latest analysis for Pritish Nandy Communications

The Last 12 Months Of Insider Transactions At Pritish Nandy Communications

CEO & Whole Time Director Pallab Bhattacharya previously made an even bigger purchase of ₹88k worth of shares at a price of ₹14.60 per share. That means that an insider was happy to buy shares at around the current price of ₹18.10. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Pallab Bhattacharya was the only individual insider to buy during the last year.

Pallab Bhattacharya bought 14.00k shares over the last 12 months at an average price of ₹16.12. 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!

Pritish Nandy Communications 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

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. Pritish Nandy Communications insiders own 46% of the company, currently worth about ₹121m 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.

So What Do The Pritish Nandy Communications Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Pritish Nandy Communications. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pritish Nandy Communications. Our analysis shows 3 warning signs for Pritish Nandy Communications (1 is potentially serious!) and we strongly recommend you look at them before investing.

But note: Pritish Nandy Communications 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.

If you’re looking to trade Pritish Nandy Communications, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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