Don't Ignore The Fact That This Insider Just Sold Some Shares In Apollo Pipes Limited (NSE:APOLLOPIPE)

We'd be surprised if Apollo Pipes Limited (NSE:APOLLOPIPE) shareholders haven't noticed that the Non-Executive & Non-Independent Director, Saket Agarwal, recently sold ₹30m worth of stock at ₹602 per share. That sale was 19% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Apollo Pipes

The Last 12 Months Of Insider Transactions At Apollo Pipes

Notably, that recent sale by Non-Executive & Non-Independent Director Saket Agarwal was not the only time they sold Apollo Pipes shares this year. Earlier in the year, they fetched ₹241 per share in a -₹63m sale. That means that even when the share price was below the current price of ₹634, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 39%of Saket Agarwal's holding.

Over the last year, we can see that insiders have bought 645.70k shares worth ₹206m. But they sold 447.10k shares for ₹129m. Overall, Apollo Pipes insiders were net buyers during the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Apollo Pipes Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Apollo Pipes insiders own about ₹5.7b worth of shares (which is 69% of the company). 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 Apollo Pipes Insider Transactions Indicate?

An insider sold Apollo Pipes shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Apollo Pipes (1 is a bit unpleasant) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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