This Insider Has Just Sold Shares In L.G. Balakrishnan & Bros Limited (NSE:LGBBROSLTD)

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 ₹8.0m worth of stock at ₹250 per share. On the bright side, that sale was only 1.0% 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

Notably, that recent sale by Vijayakumar Rajvirdhan is the biggest insider sale of L.G. Balakrishnan & Bros shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹262). 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 1.0% of Vijayakumar Rajvirdhan's stake.

Vijayakumar Rajvirdhan divested 168.63k shares over the last 12 months at an average price of ₹236. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that L.G. Balakrishnan & Bros insiders own 37% of the company, worth about ₹3.0b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At L.G. Balakrishnan & Bros Tell Us?

An insider hasn't bought L.G. Balakrishnan & Bros stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 example - L.G. Balakrishnan & Bros has 3 warning signs we think you should be aware of.

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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