Insider Buying: The Nitiraj Engineers Limited (NSE:NITIRAJ) Chairman & MD Just Bought ₹1.7m Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Nitiraj Engineers Limited (NSE:NITIRAJ) Chairman & MD, Rajesh Bhatwal, recently bought ₹1.7m worth of stock, for ₹51.28 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Nitiraj Engineers

Nitiraj Engineers Insider Transactions Over The Last Year

In fact, the recent purchase by Rajesh Bhatwal was the biggest purchase of Nitiraj Engineers shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than ₹47.95 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Nitiraj Engineers insiders were buying shares, but not selling. 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!

Nitiraj Engineers is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Nitiraj Engineers

For a common shareholder, it is worth checking how many shares are held by company insiders. 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 Nitiraj Engineers insiders own 79% of the company, worth about ₹390m. 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 Nitiraj Engineers Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Nitiraj Engineers. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Nitiraj Engineers (including 2 which can't be ignored).

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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This article by Simply Wall St is general in nature. 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.
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