Kernex Microsystems (India) Insider Buyers Net ₹1.5m Despite 12% Stock Decline

Kernex Microsystems (India) Limited (NSE:KERNEX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of ₹11m is now worth ₹12m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Kernex Microsystems (India)

The Last 12 Months Of Insider Transactions At Kernex Microsystems (India)

The Non-Independent Non-Executive Director Janardhana Vinta made the biggest insider purchase in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹266 each. We do like to see buying, but this purchase was made at well below the current price of ₹302. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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

Kernex Microsystems (India) is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Kernex Microsystems (India)

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. We usually like to see fairly high levels of insider ownership. Kernex Microsystems (India) insiders own 51% of the company, currently worth about ₹2.7b 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.

So What Do The Kernex Microsystems (India) Insider Transactions Indicate?

The fact that there have been no Kernex Microsystems (India) insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Kernex Microsystems (India) insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Kernex Microsystems (India) has 5 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

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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.