Insider Sellers Might Regret Selling Agarwal Float Glass India Shares at a Lower Price Than Current Market Value

Agarwal Float Glass India Limited's (NSE:AGARWALFT) value has fallen 13% in the last week, but insiders who sold ₹63m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹71.66 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Agarwal Float Glass India

The Last 12 Months Of Insider Transactions At Agarwal Float Glass India

The MD & Chairman, Uma Shankar Agarwal, made the biggest insider sale in the last 12 months. That single transaction was for ₹9.9m worth of shares at a price of ₹94.15 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹42.45. So it may not shed much light on insider confidence at current levels. Uma Shankar Agarwal was the only individual insider to sell over the last year.

Uma Shankar Agarwal sold a total of 885.00k shares over the year at an average price of ₹71.66. 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 Agarwal Float Glass India 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Agarwal Float Glass India insiders own 58% of the company, worth about ₹177m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Agarwal Float Glass India Tell Us?

It doesn't really mean much that no insider has traded Agarwal Float Glass India shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Agarwal Float Glass India insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Agarwal Float Glass India and understanding these should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.