Have Insiders Sold Dixon Technologies (India) Limited (NSE:DIXON) Shares Recently?

We wouldn't blame Dixon Technologies (India) Limited (NSE:DIXON) shareholders if they were a little worried about the fact that Atul Lall, the MD & Director recently netted about ₹507m selling shares at an average price of ₹9,943. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Dixon Technologies (India)

The Last 12 Months Of Insider Transactions At Dixon Technologies (India)

In fact, the recent sale by Atul Lall was the biggest sale of Dixon Technologies (India) shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹10,107. 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. We note that the biggest single sale was only 11%of Atul Lall's holding.

Over the last year, we can see that insiders have bought 52.00 shares worth ₹167k. But insiders sold 278.59k shares worth ₹1.8b. All up, insiders sold more shares in Dixon Technologies (India) than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Dixon Technologies (India) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Dixon Technologies (India) insiders own 51% of the company, worth about ₹59b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Dixon Technologies (India) Tell Us?

Insiders sold Dixon Technologies (India) shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Dixon Technologies (India) makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dixon Technologies (India). Every company has risks, and we've spotted 2 warning signs for Dixon Technologies (India) you should know about.

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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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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