Kernex Microsystems (India) Non-Independent Non-Executive Director Acquires 1.8% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Kernex Microsystems (India) Limited (NSE:KERNEX) Non-Independent Non-Executive Director, Janardhana Vinta, recently bought ₹5.3m worth of stock, for ₹888 per share. However, it only increased their shares held by 1.8%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Kernex Microsystems (India)

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

In fact, the recent purchase by Janardhana Vinta was the biggest purchase of Kernex Microsystems (India) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is ₹960. 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 bought shares at close to current prices. The only individual insider to buy over the last year was Janardhana Vinta. Notably Janardhana Vinta was also the biggest seller.

Janardhana Vinta bought 10.00k shares over the last 12 months at an average price of ₹874. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Kernex Microsystems (India) 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 Kernex Microsystems (India)

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 Kernex Microsystems (India) insiders own 45% of the company, worth about ₹7.2b. 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 Kernex Microsystems (India) Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Kernex Microsystems (India). That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Kernex Microsystems (India) you should be aware of, and 2 of them don't sit too well with us.

But note: Kernex Microsystems (India) 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.