Have Insiders Sold Sterling Tools Shares Recently?

Anyone interested in Sterling Tools Limited (NSE:STERTOOLS) should probably be aware that the Managing Director, Atul Aggarwal, recently divested ₹41m worth of shares in the company, at an average price of ₹705 each. However, the silver lining is that the sale only reduced their total holding by 0.6%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Sterling Tools

Sterling Tools Insider Transactions Over The Last Year

In fact, the recent sale by Atul Aggarwal was the biggest sale of Sterling Tools shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹668. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Sterling Tools Boast High 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. We usually like to see fairly high levels of insider ownership. Sterling Tools insiders own about ₹17b worth of shares (which is 70% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sterling Tools Insiders?

An insider sold Sterling Tools shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Sterling Tools 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sterling Tools. Case in point: We've spotted 3 warning signs for Sterling Tools you should be aware of.

Of course Sterling Tools 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.