Did Butterfly Gandhimathi Appliances Limited (NSE:BUTTERFLY) Insiders Sell Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Butterfly Gandhimathi Appliances Limited (NSE:BUTTERFLY), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Butterfly Gandhimathi Appliances

The Last 12 Months Of Insider Transactions At Butterfly Gandhimathi Appliances

While no particular insider transaction stood out, we can still look at the overall trading.

V. M. Karthikeyan sold a total of 28.12k shares over the year at an average price of ₹197. 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!

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 Butterfly Gandhimathi Appliances

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Butterfly Gandhimathi Appliances insiders own about ₹1.4b worth of shares. That equates to 33% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Butterfly Gandhimathi Appliances Tell Us?

The fact that there have been no Butterfly Gandhimathi Appliances insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Butterfly Gandhimathi Appliances insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Butterfly Gandhimathi Appliances. Case in point: We've spotted 3 warning signs for Butterfly Gandhimathi Appliances you should be aware of, and 1 of them doesn't sit too well with us.

But note: Butterfly Gandhimathi Appliances 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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