Have Insiders Sold Godrej Industries Limited (NSE:GODREJIND) Shares Recently?

We note that a Godrej Industries Limited (NSE:GODREJIND) insider, Nasim Ali, recently sold ₹321k worth of stock for ₹401 per share. While that isn't a lot of money, it was a substantial 62% of their holding, so certainly isn't a good sign.

Check out our latest analysis for Godrej Industries

Godrej Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Karla Bookman bought ₹100m worth of shares at a price of ₹423 per share. That means that even when the share price was higher than ₹420 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Karla Bookman was the only individual insider to buy shares in the last twelve months.

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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Godrej Industries Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Godrej Industries insiders own 9.0% of the company, worth about ₹13b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Godrej Industries Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. 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 we're not too bothered by recent selling. 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. For example, Godrej Industries has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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, but not derivative transactions.

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