Trade Alert: The Whole Time Director Of Lincoln Pharmaceuticals Limited (NSE:LINCOLN), Munjal Patel, Has Just Spent ₹20m Buying 9.2% More Shares

Investors who take an interest in Lincoln Pharmaceuticals Limited (NSE:LINCOLN) should definitely note that the Whole Time Director, Munjal Patel, recently paid ₹245 per share to buy ₹20m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 9.2%.

See our latest analysis for Lincoln Pharmaceuticals

The Last 12 Months Of Insider Transactions At Lincoln Pharmaceuticals

Notably, that recent purchase by Munjal Patel is the biggest insider purchase of Lincoln Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is ₹245. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Lincoln Pharmaceuticals insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Lincoln Pharmaceuticals Boast High 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. We usually like to see fairly high levels of insider ownership. Lincoln Pharmaceuticals insiders own about ₹2.2b worth of shares (which is 44% of the company). 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 Lincoln Pharmaceuticals Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Lincoln Pharmaceuticals insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Lincoln Pharmaceuticals and understanding these should be part of your investment process.

Of course Lincoln Pharmaceuticals 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.

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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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