Have Bhagyanagar India Limited (NSE:BHAGYANGR) Insiders Been Selling Their Stock?

Investors may wish to note that an insider of Bhagyanagar India Limited, Nikita Gupta, recently netted ₹1.9m from selling stock, receiving an average price of ₹30.74. That might not be a huge sum but it was 75% of their personal holding, so we find it a little discouraging.

See our latest analysis for Bhagyanagar India

The Last 12 Months Of Insider Transactions At Bhagyanagar India

In fact, the recent sale by Nikita Gupta was the biggest sale of Bhagyanagar India shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹28.40. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 154.23k shares worth ₹2.8m. But insiders sold 61.47k shares worth ₹1.9m. In total, Bhagyanagar India insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bhagyanagar India insiders own 64% of the company, currently worth about ₹579m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Bhagyanagar India Tell Us?

The stark truth for Bhagyanagar India is that there has been more insider selling than insider buying in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 6 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Bhagyanagar India.

Of course Bhagyanagar India 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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