Prajay Engineers Syndicate Decline Means Insider Profits Down To ₹21m

Insiders who purchased Prajay Engineers Syndicate Limited (NSE:PRAENG) shares in the past 12 months are unlikely to be deeply impacted by the stock's 10% decline over the past week. Even after accounting for the recent loss, the ₹6.70m worth of stock purchased by them is now worth ₹27.4m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Prajay Engineers Syndicate

Prajay Engineers Syndicate Insider Transactions Over The Last Year

The Executive Chairman & MD Vijaysen Dantapalli made the biggest insider purchase in the last 12 months. That single transaction was for ₹6.7m worth of shares at a price of ₹8.26 each. We do like to see buying, but this purchase was made at well below the current price of ₹33.80. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

Prajay Engineers Syndicate is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Prajay Engineers Syndicate Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Prajay Engineers Syndicate insiders own about ₹1.0b worth of shares (which is 43% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Prajay Engineers Syndicate Tell Us?

The fact that there have been no Prajay Engineers Syndicate insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Prajay Engineers Syndicate insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prajay Engineers Syndicate. Be aware that Prajay Engineers Syndicate is showing 3 warning signs in our investment analysis, and 1 of those is concerning...

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 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.