Whole-Time Director & Group CFO Ravindra Joshi Sold A Bunch Of Shares In Precision Camshafts

We note that the Precision Camshafts Limited (NSE:PRECAM) Whole-Time Director & Group CFO, Ravindra Joshi, recently sold ₹5.4m worth of stock for ₹320 per share. While that isn't a lot of money, it was a substantial 98% of their holding, so certainly isn't a good sign.

View our latest analysis for Precision Camshafts

Precision Camshafts Insider Transactions Over The Last Year

In fact, the recent sale by Ravindra Joshi was the biggest sale of Precision Camshafts shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹352, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 98% of Ravindra Joshi's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership Of Precision Camshafts

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Precision Camshafts insiders own 64% of the company, worth about ₹22b. 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 Precision Camshafts Insider Transactions Indicate?

An insider sold Precision Camshafts shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Precision Camshafts is growing earnings. 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 Precision Camshafts. Every company has risks, and we've spotted 3 warning signs for Precision Camshafts (of which 1 is potentially serious!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.