Have Ador Welding Insiders Been Selling Stock?

We'd be surprised if Ador Welding Limited (NSE:ADORWELD) shareholders haven't noticed that an insider, Priyadarshini Lambert, recently sold ₹21m worth of stock at ₹1,390 per share. That sale was 31% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Ador Welding

Ador Welding Insider Transactions Over The Last Year

Notably, that recent sale by Priyadarshini Lambert is the biggest insider sale of Ador Welding shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹1,342. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Happily, we note that in the last year insiders paid ₹16m for 11.86k shares. On the other hand they divested 15.00k shares, for ₹21m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Ador Welding insiders own about ₹2.6b worth of shares. That equates to 14% of the company. 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 Does This Data Suggest About Ador Welding Insiders?

Unfortunately, there has been more insider selling of Ador Welding stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Ador Welding is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ador Welding. While conducting our analysis, we found that Ador Welding has 2 warning signs and it would be unwise to ignore these.

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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.