Even if it’s not a huge purchase, we think it was good to see that Saurinbhai Parikh, the Chairman & MD of Pashupati Cotspin Limited (NSE:PASHUPATI) recently shelled out ₹1.0m to buy stock, at ₹81.56 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Pashupati Cotspin
Notably, that recent purchase by Saurinbhai Parikh is the biggest insider purchase of Pashupati Cotspin shares that we’ve seen in the last year. That implies that an insider found the current price of ₹85.00 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for Pashupati Cotspin share holders is that an insider was buying at near the current price. Saurinbhai Parikh was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Pashupati Cotspin is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Pashupati Cotspin Boast High Insider Ownership?
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 Pashupati Cotspin insiders own 77% of the company, worth about ₹951m. 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 Pashupati Cotspin Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Pashupati Cotspin insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We’ve spotted 4 warning signs for Pashupati Cotspin you should be aware of, and 2 of these shouldn’t be ignored.
But note: Pashupati Cotspin 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, 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.
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