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Those following along with Plastiblends India Limited (NSE:PLASTIBLEN) will no doubt be intrigued by the recent purchase of shares by Varun Kabra, MD & Executive Non-Independent Director of the company, who spent a stonking ₹152m on stock at an average price of ₹179. Not only is that a big swing, but it increased their holding size by 20%, which is definitely great to see.
Check out our latest analysis for Plastiblends India
Plastiblends India Insider Transactions Over The Last Year
In fact, the recent purchase by MD & Executive Non-Independent Director Varun Kabra was not their only acquisition of Plastiblends India shares this year. They previously made an even bigger purchase of ₹152m worth of shares at a price of ₹179 per share. That implies that an insider found the current price of ₹190 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Plastiblends India share holders is that insiders were buying at near the current price.
While Plastiblends India insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Plastiblends India 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 of Plastiblends India
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Plastiblends India insiders own 45% of the company, worth about ₹2.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Plastiblends India Insiders?
It is good to see the recent insider purchase. 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 Plastiblends India. Looks promising! I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.