Stock Analysis

Have AIA Engineering Limited (NSE:AIAENG) Insiders Been Selling Their Stock?

NSEI:AIAENG
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We note that a AIA Engineering Limited (NSE:AIAENG) insider, Balkrishna Shah, recently sold ₹1.6m worth of stock for ₹2,017 per share. However we note that the sale only shrunk their holding by 4.1%.

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The Last 12 Months Of Insider Transactions At AIA Engineering

In fact, the recent sale by insider Balkrishna Shah was not their only sale of AIA Engineering shares this year. Earlier in the year, they fetched ₹2,059 per share in a -₹10m sale. That means that an insider was selling shares at around the current price of ₹2,053. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

AIA Engineering insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:AIAENG Insider Trading Volume April 4th 2021

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

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that AIA Engineering insiders own 59% of the company, worth about ₹113b. 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 AIA Engineering Insider Transactions Indicate?

An insider sold AIA Engineering shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - AIA Engineering has 2 warning signs we think you should be aware of.

But note: AIA Engineering may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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