Pavna Industries Sees Insider Stock Selling

From what we can see, insiders were net sellers in Pavna Industries Limited's (NSE:PAVNAIND ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Pavna Industries

The Last 12 Months Of Insider Transactions At Pavna Industries

The Chief Financial Officer, Palak Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹21m worth of shares at a price of ₹565 each. So we know that an insider sold shares at around the present share price of ₹521. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was Palak Jain.

Palak Jain divested 219.56k shares over the last 12 months at an average price of ₹570. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Pavna Industries Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Pavna Industries. In total, Chief Financial Officer Palak Jain sold ₹125m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Pavna Industries

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Pavna Industries insiders own 74% of the company, currently worth about ₹4.7b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Pavna Industries Insider Transactions Indicate?

An insider sold Pavna Industries shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pavna Industries. To that end, you should learn about the 3 warning signs we've spotted with Pavna Industries (including 1 which is potentially serious).

Of course Pavna Industries 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.