EPack Prefab Technologies Insiders Are Down ₹3.7m But Regain Some Losses
Some of the losses seen by insiders who purchased ₹18.6m worth of EPack Prefab Technologies Limited (NSE:EPACKPEB) shares over the past year were recovered after the stock increased by 10% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling ₹3.7m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
EPack Prefab Technologies Insider Transactions Over The Last Year
The Independent Director Ram Grovher made the biggest insider purchase in the last 12 months. That single transaction was for ₹5.5m worth of shares at a price of ₹313 each. That means that even when the share price was higher than ₹248 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Ram Grovher was the only individual insider to buy during the last year. We note that Ram Grovher was both the biggest buyer and the biggest seller.
Ram Grovher purchased 59.96k shares over the year. The average price per share was ₹309. 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!
View our latest analysis for EPack Prefab Technologies
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does EPack Prefab Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that EPack Prefab Technologies insiders own 65% of the company, worth about ₹16b. 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 Do The EPack Prefab Technologies Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like EPack Prefab Technologies insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for EPack Prefab Technologies that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.