Vakrangee Limited (NSE:VAKRANGEE) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Dinesh Nandwana, recently bought a whopping ₹54m worth of stock, at a price of ₹30.81. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.9%.
Vakrangee Insider Transactions Over The Last Year
In fact, the recent purchase by Executive Chairman Dinesh Nandwana was not their only acquisition of Vakrangee shares this year. Earlier in the year, they paid ₹30.81 per share in a ₹54m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹29.00). 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 always take careful note of the price insiders pay when purchasing shares. 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.
While Vakrangee insiders bought shares last year, they didn't sell. The average buy price was around ₹37.97. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. Insiders own 7.3% of Vakrangee shares, worth about ₹2.2b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Vakrangee Insider Transactions Indicate?
The recent insider purchase is heartening. 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 Vakrangee. One for the watchlist, at least! Along with insider transactions, I recommend checking if Vakrangee is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Vakrangee may not be the best stock to buy. So you may wish to see this free collection of high quality 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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.