Have Greaves Cotton Insiders Been Selling Stock?

Anyone interested in Greaves Cotton Limited (NSE:GREAVESCOT) should probably be aware that a company insider, Nagesh Basavanhalli, recently divested ₹19m worth of shares in the company, at an average price of ₹128 each. The eyebrow raising move amounted to a reduction of 50% in their holding.

Check out our latest analysis for Greaves Cotton

The Last 12 Months Of Insider Transactions At Greaves Cotton

In fact, the recent sale by insider Nagesh Basavanhalli was not their only sale of Greaves Cotton shares this year. Earlier in the year, they fetched ₹135 per share in a -₹25m sale. That means that an insider was selling shares at around the current price of ₹132. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Greaves Cotton didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Greaves Cotton

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Greaves Cotton, though insiders do hold about ₹30m worth of shares. However, it's possible that insiders might have an indirect interest through a more complex structure. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Greaves Cotton Insiders?

An insider sold Greaves Cotton shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Greaves Cotton has 3 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com