Insider Spends ₹6.7m Buying More Shares In Prajay Engineers Syndicate

Whilst it may not be a huge deal, we thought it was good to see that the Prajay Engineers Syndicate Limited (NSE:PRAENG) Executive Chairman & MD, Vijaysen Dantapalli, recently bought ₹6.7m worth of stock, for ₹8.26 per share. However, it only increased their shares held by 3.8%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Prajay Engineers Syndicate

Prajay Engineers Syndicate Insider Transactions Over The Last Year

Notably, that recent purchase by Vijaysen Dantapalli is the biggest insider purchase of Prajay Engineers Syndicate shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of ₹34.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Prajay Engineers Syndicate 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Prajay Engineers Syndicate insiders own 43% of the company, currently worth about ₹1.0b 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 Prajay Engineers Syndicate 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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Prajay Engineers Syndicate insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Prajay Engineers Syndicate is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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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