This Insider Has Just Sold Shares In Jubilant FoodWorks Limited (NSE:JUBLFOOD)

We’d be surprised if Jubilant FoodWorks Limited (NSE:JUBLFOOD) shareholders haven’t noticed that an insider, Rakesh Arora, recently sold ₹15m worth of stock at ₹2,274 per share. Equally important, that sale actually reduced their holding by a full 68% which hardly makes us feel bullish about the stock.

See our latest analysis for Jubilant FoodWorks

Jubilant FoodWorks Insider Transactions Over The Last Year

Notably, that recent sale by Rakesh Arora is the biggest insider sale of Jubilant FoodWorks shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (₹2,327). 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. This single sale was 68% of Rakesh Arora’s stake.

Insiders in Jubilant FoodWorks didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:JUBLFOOD Insider Trading Volume September 13th 2020

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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Jubilant FoodWorks insiders have about 0.07% of the stock, worth approximately ₹218m. However, it’s possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Jubilant FoodWorks Insiders?

An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. 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 these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To assist with this, we’ve discovered 3 warning signs that you should run your eye over to get a better picture of Jubilant FoodWorks.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Promoted
If you decide to trade Jubilant FoodWorks, 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.


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.