Chairman of the Board & MD Falgun Savani Just Bought A Handful Of Shares In Par Drugs and Chemicals Limited (NSE:PAR)

Even if it's not a huge purchase, we think it was good to see that Falgun Savani, the Chairman of the Board & MD of Par Drugs and Chemicals Limited (NSE:PAR) recently shelled out ₹263k to buy stock, at ₹65.75 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Par Drugs and Chemicals

The Last 12 Months Of Insider Transactions At Par Drugs and Chemicals

There wasn't any very large single transaction over the last year, but we can still observe some trading.

While Par Drugs and Chemicals insiders bought shares during the last year, they didn't sell. They paid about ₹43.93 on average. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels, which is around ₹65.00. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Par Drugs and Chemicals insiders own about ₹321m worth of shares (which is 80% 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 Par Drugs and Chemicals Tell Us?

It's certainly positive to see the recent insider purchase. 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 Par Drugs and Chemicals. One for the watchlist, at least! 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. Every company has risks, and we've spotted 2 warning signs for Par Drugs and Chemicals (of which 1 can't be ignored!) you should know about.

But note: Par Drugs and Chemicals 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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