Prajay Engineers Syndicate Insider Confidence Rewarded, Stock Hits ₹1.6b Market Cap

Prajay Engineers Syndicate Limited (NSE:PRAENG) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a ₹189m addition to the company’s market value. As a result, the stock they originally bought for ₹6.70m is now worth ₹18.8m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Prajay Engineers Syndicate Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman & MD Vijaysen Dantapalli bought ₹6.7m worth of shares at a price of ₹8.26 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹23.24. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

Check out our latest analysis for Prajay Engineers Syndicate

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.

Insider Ownership Of Prajay Engineers Syndicate

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Prajay Engineers Syndicate insiders own 41% of the company, worth about ₹672m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Prajay Engineers Syndicate Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Prajay Engineers Syndicate insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prajay Engineers Syndicate. Case in point: We've spotted 3 warning signs for Prajay Engineers Syndicate you should be aware of, and 1 of these doesn't sit too well with us.

But note: Prajay Engineers Syndicate 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.