In This Article:
Whilst it may not be a huge deal, we thought it was good to see that the Hi-Tech Pipes Limited (NSE:HITECH) Chairman & MD, Ajay Bansal, recently bought ₹1.8m worth of stock, for ₹178 per share. That might not be a big purchase but it only increased their holding by 0.2%, and could be interpreted as a good sign.
View our latest analysis for Hi-Tech Pipes
Hi-Tech Pipes Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman & MD Ajay Bansal was not the only time they bought Hi-Tech Pipes shares this year. Earlier in the year, they paid ₹198 per share in a ₹6.0m purchase. That means that even when the share price was higher than ₹173 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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. Ajay Bansal was the only individual insider to buy shares in the last twelve months.
Ajay Bansal bought 48777 shares over the last 12 months at an average price of ₹183. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Hi-Tech Pipes insiders own 61% of the company, currently worth about ₹1.1b based on the recent share price. 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 Hi-Tech Pipes 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 Hi-Tech Pipes. That's what I like to see! To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.