Bhupendra Kumar Modi Is The Non-Independent Chairman of the Board of SEVAK Limited (SGX:BAI) And They Just Picked Up 2.9% More Shares

Even if it's not a huge purchase, we think it was good to see that Bhupendra Kumar Modi, the Non-Independent Chairman of the Board of SEVAK Limited (SGX:BAI) recently shelled out S$79k to buy stock, at S$1.52 per share. However, it only increased their shares held by 2.9%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for SEVAK

The Last 12 Months Of Insider Transactions At SEVAK

In fact, the recent purchase by Bhupendra Kumar Modi was the biggest purchase of SEVAK shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of S$2.42. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Bhupendra Kumar Modi was the only individual insider to buy during the last year.

Bhupendra Kumar Modi purchased 105.10k shares over the year. The average price per share was S$1.53. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

SEVAK 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

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. I reckon it's a good sign if insiders own a significant number of shares in the company. SEVAK insiders own about S$5.0m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SEVAK Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest SEVAK insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SEVAK. When we did our research, we found 4 warning signs for SEVAK (1 is significant!) that we believe deserve your full attention.

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. 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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