Have Insiders Sold L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) Shares Recently?

We'd be surprised if L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD) shareholders haven't noticed that the Non-Executive Director, Vijayakumar Rajvirdhan, recently sold ₹27m worth of stock at ₹213 per share. On the bright side, that sale was only 4.1% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for L.G. Balakrishnan & Bros

L.G. Balakrishnan & Bros Insider Transactions Over The Last Year

In fact, the recent sale by Vijayakumar Rajvirdhan was the biggest sale of L.G. Balakrishnan & Bros shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹239, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 4.1% of Vijayakumar Rajvirdhan's holding.

Vijayakumar Rajvirdhan sold a total of 342.58k shares over the year at an average price of ₹220. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like L.G. Balakrishnan & Bros better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does L.G. Balakrishnan & Bros Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 36% of L.G. Balakrishnan & Bros shares, worth about ₹2.7b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The L.G. Balakrishnan & Bros Insider Transactions Indicate?

An insider hasn't bought L.G. Balakrishnan & Bros stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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 L.G. Balakrishnan & Bros. Every company has risks, and we've spotted 3 warning signs for L.G. Balakrishnan & Bros you should know about.

Of course L.G. Balakrishnan & Bros 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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