Rajeev Lonial Is The President & COO of Washing Machine of Dixon Technologies (India) Limited (NSE:DIXON) And They Just Sold 35% Of Their Shares

We'd be surprised if Dixon Technologies (India) Limited (NSE:DIXON) shareholders haven't noticed that the President & COO of Washing Machine, Rajeev Lonial, recently sold ₹22m worth of stock at ₹9,369 per share. The eyebrow raising move amounted to a reduction of 35% in their holding.

See our latest analysis for Dixon Technologies (India)

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

The Executive Chairman, Sunil Vachani, made the biggest insider sale in the last 12 months. That single transaction was for ₹48m worth of shares at a price of ₹3,225 each. That means that even when the share price was below the current price of ₹9,240, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 0.3% of Sunil Vachani's stake.

In the last twelve months insiders purchased 52.00 shares for ₹167k. But insiders sold 190.91k shares worth ₹756m. All up, insiders sold more shares in Dixon Technologies (India) than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Dixon Technologies (India) insiders own 8.7% of the company, currently worth about ₹9.3b 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 Does This Data Suggest About Dixon Technologies (India) Insiders?

Insiders haven't bought Dixon Technologies (India) stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Dixon Technologies (India) makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. At Simply Wall St, we found 3 warning signs for Dixon Technologies (India) that deserve your attention before buying any shares.

But note: Dixon Technologies (India) 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.

If you decide to trade Dixon Technologies (India), use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.