Insider Sellers Might Regret Selling Emkay Taps and Cutting Tools Shares at a Lower Price Than Current Market Value

Emkay Taps and Cutting Tools Limited's (NSE:EMKAYTOOLS) stock price has dropped 13% in the previous week, but insiders who sold ₹343m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹458 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Emkay Taps and Cutting Tools Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman, Ajayprakash Kanoria, for ₹126m worth of shares, at about ₹485 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹125. So it is hard to draw any strong conclusion from it.

Insiders in Emkay Taps and Cutting Tools 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!

View our latest analysis for Emkay Taps and Cutting Tools

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Insider Ownership Of Emkay Taps and Cutting Tools

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Emkay Taps and Cutting Tools insiders own about ₹782m worth of shares (which is 59% of the company). 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 Emkay Taps and Cutting Tools Tell Us?

It doesn't really mean much that no insider has traded Emkay Taps and Cutting Tools shares in the last quarter. While we feel good about high insider ownership of Emkay Taps and Cutting Tools, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Emkay Taps and Cutting Tools that deserve your attention before buying any shares.

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.