Insider Buying: The Vineet Laboratories Limited (NSE:VINEETLAB) MD & Director Just Bought ₹430k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Gaddam Ramana, the MD & Director of Vineet Laboratories Limited (NSE:VINEETLAB) recently shelled out ₹430k to buy stock, at ₹42.99 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
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Vineet Laboratories Insider Transactions Over The Last Year
Notably, that recent purchase by Gaddam Ramana is the biggest insider purchase of Vineet Laboratories shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹42.80). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Gaddam Ramana.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Of Vineet Laboratories
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Vineet Laboratories insiders own about ₹196m worth of shares (which is 50% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Vineet Laboratories Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Vineet Laboratories. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vineet Laboratories. Every company has risks, and we've spotted 5 warning signs for Vineet Laboratories (of which 3 are significant!) you should know about.
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, but not derivative transactions.
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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.
Vineet Laboratories Limited engages in the research, development, and manufacture of active pharmaceutical ingredients and fine chemicals in India.
Unattractive dividend payer with imperfect balance sheet.