Trade Alert: The Executive Chairman Of Smartlink Holdings Limited (NSE:SMARTLINK), Kamalaksha Naik, Has Just Spent ₹8.1m Buying 1.2% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Smartlink Holdings Limited (NSE:SMARTLINK) Executive Chairman, Kamalaksha Naik, recently bought ₹8.1m worth of stock, for ₹147 per share. However, it only increased their shares held by 1.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Smartlink Holdings

Smartlink Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Kamalaksha Naik is the biggest insider purchase of Smartlink Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹148). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Kamalaksha Naik was the only individual insider to buy during the last year.

Kamalaksha Naik bought 126.00k shares over the last 12 months at an average price of ₹146. 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!

Smartlink Holdings 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 Smartlink Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Smartlink Holdings insiders own 71% of the company, worth about ₹1.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Smartlink Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Smartlink Holdings. Looks promising! 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. While conducting our analysis, we found that Smartlink Holdings has 2 warning signs and it would be unwise to ignore them.

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.