Dhruv Consultancy Services Insiders Got A Good Deal Selling At ₹51.70

Even though Dhruv Consultancy Services Limited (NSE:DHRUV) stock gained 31% last week, insiders who sold ₹17m worth of stock over the past year are probably better off. Selling at an average price of ₹51.70, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Dhruv Consultancy Services

The Last 12 Months Of Insider Transactions At Dhruv Consultancy Services

The insider, Prutha Danadawate, made the biggest insider sale in the last 12 months. That single transaction was for ₹7.0m worth of shares at a price of ₹50.24 each. That means that an insider was selling shares at slightly below the current price (₹83.75). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 13% of Prutha Danadawate's holding.

Insiders in Dhruv Consultancy Services didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Have Dhruv Consultancy Services Insiders Traded Recently?

In the last three months company Executive Non Independent Director Jayashree Dandawate divested ₹51k worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Does Dhruv Consultancy Services 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. It's great to see that Dhruv Consultancy Services insiders own 72% of the company, worth about ₹921m. 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 Dhruv Consultancy Services Tell Us?

An insider hasn't bought Dhruv Consultancy Services stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. Our analysis shows 3 warning signs for Dhruv Consultancy Services (1 is a bit concerning!) and we strongly recommend you look at these before investing.

Of course Dhruv Consultancy Services 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.