Insider Spends ₹5.3m Buying More Shares In SMS Lifesciences India

Whilst it may not be a huge deal, we thought it was good to see that the SMS Lifesciences India Limited (NSE:SMSLIFE) Chief Marketing Officer & Executive Director, Talluri Praveen, recently bought ₹5.3m worth of stock, for ₹827 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for SMS Lifesciences India

The Last 12 Months Of Insider Transactions At SMS Lifesciences India

Notably, that recent purchase by Chief Marketing Officer & Executive Director Talluri Praveen was not the only time they bought SMS Lifesciences India shares this year. Earlier in the year, they paid ₹645 per share in a ₹10.0m purchase. Even though the purchase was made at a significantly lower price than the recent price (₹846), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Talluri Praveen bought a total of 32.76k shares over the year at an average price of ₹646. 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!

SMS Lifesciences India 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 SMS Lifesciences India

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SMS Lifesciences India insiders own 71% of the company, currently worth about ₹1.8b 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.

What Might The Insider Transactions At SMS Lifesciences India Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SMS Lifesciences India. One for the watchlist, at least! While it's good to be aware of 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. When we did our research, we found 4 warning signs for SMS Lifesciences India (2 can't be ignored!) that we believe deserve your full attention.

But note: SMS Lifesciences India 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 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.

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