Have CIE Automotive India Insiders Been Selling Stock?

We wouldn't blame CIE Automotive India Limited (NSE:CIEINDIA) shareholders if they were a little worried about the fact that Anjali Haridass, a company insider, recently netted about ₹57m selling shares at an average price of ₹589. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.8%.

Check out our latest analysis for CIE Automotive India

The Last 12 Months Of Insider Transactions At CIE Automotive India

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Non-Independent Director, Anil Haridass, sold ₹882m worth of shares at a price of ₹441 per share. That means that even when the share price was below the current price of ₹567, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 52% of Anil Haridass's holding.

In the last year CIE Automotive India insiders didn't buy any company stock. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CIE Automotive India insiders own 0.9% of the company, worth about ₹1.9b. 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 Does This Data Suggest About CIE Automotive India Insiders?

Insiders haven't bought CIE Automotive India stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since CIE Automotive India is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of CIE Automotive India.

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 of direct interests only, but not derivative transactions or indirect interests.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.