Additional Independent Director Of Minda Sold 55% Of Their Shares

Anyone interested in Minda Corporation Limited (NSE:MINDACORP) should probably be aware that the Additional Independent Director, Laxman Ramnarayan, recently divested ₹39m worth of shares in the company, at an average price of ₹505 each. Equally important, that sale actually reduced their holding by a full 55% which hardly makes us feel bullish about the stock.

See our latest analysis for Minda

The Last 12 Months Of Insider Transactions At Minda

Notably, that recent sale by Laxman Ramnarayan is the biggest insider sale of Minda shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹542). 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 55% of Laxman Ramnarayan's stake.

Insiders in Minda 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Minda insiders own 54% of the company, worth about ₹69b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Minda Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that Minda has 2 warning signs and it would be unwise to ignore these.

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

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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.