Prajay Engineers Syndicate Stock Down 23% But Insiders Still In ₹8.9m Profit

Insiders who bought Prajay Engineers Syndicate Limited (NSE:PRAENG) stock lover the last 12 months are probably not as affected by last week’s 23% loss. Reason being, despite the recent loss, insiders original purchase value of ₹6.70m is now worth ₹15.6m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Prajay Engineers Syndicate

Prajay Engineers Syndicate Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman & MD Vijaysen Dantapalli for ₹6.7m worth of shares, at about ₹8.26 per share. We do like to see buying, but this purchase was made at well below the current price of ₹19.22. 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.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Prajay Engineers Syndicate insiders own about ₹580m worth of shares (which is 43% 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.

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

It doesn't really mean much that no insider has traded Prajay Engineers Syndicate shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Prajay Engineers Syndicate insiders feel good about the company's future. 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 a bit unpleasant...

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.