Insiders in Grindwell Norton Limited (NSE:GRINDWELL) were left out from last week's 9.2% gains after selling stock earlier in the year

While it’s been a great week for Grindwell Norton Limited (NSE:GRINDWELL) shareholders after stock gained 9.2%, they should consider it with a grain of salt. In spite of the relatively cheap prices, insiders made the decision to sell ₹6.9m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

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.

See our latest analysis for Grindwell Norton

Grindwell Norton Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Khurshid Narang, sold ₹5.0m worth of shares at a price of ₹1,209 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹1,825. 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. This single sale was just 0.2% of Khurshid Narang's stake. Khurshid Narang was the only individual insider to sell shares in the last twelve months.

Khurshid Narang ditched 5.73k shares over the year. The average price per share was ₹1,208. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership of Grindwell Norton

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Grindwell Norton insiders own 8.5% of the company, currently worth about ₹17b based on the recent share price. 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 Does This Data Suggest About Grindwell Norton Insiders?

The fact that there have been no Grindwell Norton 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 Grindwell Norton insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Grindwell Norton. You'd be interested to know, that we found 1 warning sign for Grindwell Norton and we suggest you have a look.

Of course Grindwell Norton 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, but not derivative transactions.

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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.