Executive Chairman & MD Ajay Anand Just Bought A Handful Of Shares In Faze Three Limited (NSE:FAZE3Q)

Whilst it may not be a huge deal, we thought it was good to see that the Faze Three Limited (NSE:FAZE3Q) Executive Chairman & MD, Ajay Anand, recently bought ₹1.5m worth of stock, for ₹265 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.

Check out our latest analysis for Faze Three

The Last 12 Months Of Insider Transactions At Faze Three

In fact, the recent purchase by Executive Chairman & MD Ajay Anand was not their only acquisition of Faze Three shares this year. Earlier in the year, they paid ₹326 per share in a ₹2.4m purchase. That means that even when the share price was higher than ₹282 (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. To us, it’s very important to consider the price insiders pay for 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 Anand was the only individual insider to buy during the last year.

Ajay Anand purchased 13.08k shares over the year. The average price per share was ₹300. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Faze Three is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Faze Three insiders own 75% of the company, worth about ₹5.1b. 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 Faze Three Insider Transactions Indicate?

It’s certainly positive to see the recent insider purchase. 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 Faze Three. Nice! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Faze Three. When we did our research, we found 2 warning signs for Faze Three (1 can’t be ignored!) that we believe deserve your full attention.

Of course Faze Three 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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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.