Potential Persistent Systems Limited (NSE:PERSISTENT) shareholders may wish to note that insider Narasinha Upadhye recently bought ₹23m worth of stock, paying ₹565 for each share. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4%.
The Last 12 Months Of Insider Transactions At Persistent Systems
Notably, that recent purchase by Narasinha Upadhye is the biggest insider purchase of Persistent Systems shares that we’ve seen in the last year. That implies that an insider found the current price of ₹573 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 84028 shares worth ₹47m. But they sold 13812 for ₹8.4m. Overall, Persistent Systems insiders were net buyers last year. You can see the insider transactions (by 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!
Does Persistent Systems Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Persistent Systems insiders own 51% of the company, worth about ₹22b. 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 Persistent Systems Tell Us?
It’s certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Persistent Systems insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Persistent Systems, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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