One Shaily Engineering Plastics Insider Has Reduced Their Stake
From what we can see, insiders were net sellers in Shaily Engineering Plastics Limited's (NSE:SHAILY ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.
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.
Shaily Engineering Plastics Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Alpana Parida, sold ₹20m worth of shares at a price of ₹2,045 per share. That means that even when the share price was below the current price of ₹2,754, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 6.5% of Alpana Parida's stake. Alpana Parida was the only individual insider to sell over the last year.
Alpana Parida ditched 10.25k shares over the year. The average price per share was ₹2,058. 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!
Check out our latest analysis for Shaily Engineering Plastics
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Shaily Engineering Plastics insiders own 48% of the company, currently worth about ₹61b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Shaily Engineering Plastics Insider Transactions Indicate?
The fact that there have been no Shaily Engineering Plastics insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Shaily Engineering Plastics, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 1 warning sign with Shaily Engineering Plastics and understanding it should be part of your investment process.
But note: Shaily Engineering Plastics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.