Insider Returns Down To ₹16m As Lincoln Pharmaceuticals' Stock Dips 13%

Insiders who purchased Lincoln Pharmaceuticals Limited (NSE:LINCOLN) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. After accounting for the recent loss, the ₹39.9m worth of shares they purchased is now worth ₹55.6m, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Lincoln Pharmaceuticals

The Last 12 Months Of Insider Transactions At Lincoln Pharmaceuticals

In the last twelve months, the biggest single purchase by an insider was when Whole Time Director Munjal Patel bought ₹20m worth of shares at a price of ₹568 per share. We do like to see buying, but this purchase was made at well below the current price of ₹812. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 68.50k shares worth ₹40m. But insiders sold 14.85k shares worth ₹11m. In the last twelve months there was more buying than selling by Lincoln Pharmaceuticals insiders. 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!

Lincoln Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Lincoln Pharmaceuticals

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lincoln Pharmaceuticals insiders own 52% of the company, currently worth about ₹8.4b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Lincoln Pharmaceuticals Insiders?

It doesn't really mean much that no insider has traded Lincoln Pharmaceuticals shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Lincoln Pharmaceuticals insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the 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. Our analysis shows 2 warning signs for Lincoln Pharmaceuticals (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.