Stock Analysis

This Insider Has Just Sold Shares In Mahindra CIE Automotive Limited (NSE:MAHINDCIE)

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We'd be surprised if Mahindra CIE Automotive Limited (NSE:MAHINDCIE) shareholders haven't noticed that the Non-Executive Non-Independent Director, Anil Haridass, recently sold ₹11m worth of stock at ₹371 per share. However, the silver lining is that the sale only reduced their total holding by 0.7%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Mahindra CIE Automotive

Mahindra CIE Automotive Insider Transactions Over The Last Year

In fact, the recent sale by Non-Executive Non-Independent Director Anil Haridass was not their only sale of Mahindra CIE Automotive shares this year. Earlier in the year, they fetched ₹296 per share in a -₹69m sale. That means that an insider was selling shares at slightly below the current price (₹359). 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. We note that the biggest single sale was only 4.4%of Anil Haridass's holding.

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

NSEI:MAHINDCIE Insider Trading Volume March 19th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Mahindra CIE Automotive

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Mahindra CIE Automotive insiders own 2.2% 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.

So What Do The Mahindra CIE Automotive Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Mahindra CIE Automotive is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. You'd be interested to know, that we found 3 warning signs for Mahindra CIE Automotive and we suggest you have a look.

Of course Mahindra CIE Automotive 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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