Insiders Could Have Profited By Holding onto Gensol Engineering Shares Despite 12% Drop

Even though Gensol Engineering Limited (NSE:GENSOL) has fallen by 12% over the past week , insiders who sold ₹115m worth of stock over the past year have had less luck. Given that the average selling price of ₹533 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Gensol Engineering Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Anmol Jaggi, sold ₹115m worth of shares at a price of ₹533 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. The silver lining is that this sell-down took place above the latest price (₹29.71). So it may not tell us anything about how insiders feel about the current share price. Anmol Jaggi was the only individual insider to sell shares in the last twelve months.

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!

View our latest analysis for Gensol Engineering

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Insider Ownership Of Gensol Engineering

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Gensol Engineering insiders own 28% of the company, worth about ₹324m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Gensol Engineering Insiders?

The fact that there have been no Gensol Engineering insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Gensol Engineering insiders selling. While it's good to be aware of 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. For example, Gensol Engineering has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.

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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.