Insider Sales At Gujarat Apollo Industries Landed A Good Price

Gujarat Apollo Industries Limited's (NSE:GUJAPOLLO) stock rose 13% last week, but insiders who sold ₹18m worth of stock over the last year are probably in a more advantageous position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹224, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Gujarat Apollo Industries

The Last 12 Months Of Insider Transactions At Gujarat Apollo Industries

The insider, Maulikkumar Patel, made the biggest insider sale in the last 12 months. That single transaction was for ₹16m worth of shares at a price of ₹221 each. That means that an insider was selling shares at slightly below the current price (₹282). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 18% of Maulikkumar Patel's stake. Maulikkumar Patel was the only individual insider to sell shares in the last twelve months.

Maulikkumar Patel ditched 82.10k shares over the year. The average price per share was ₹224. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Gujarat Apollo Industries

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Gujarat Apollo Industries insiders own 58% of the company, worth about ₹1.9b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Gujarat Apollo Industries Insiders?

It doesn't really mean much that no insider has traded Gujarat Apollo Industries shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Gujarat Apollo Industries insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Gujarat Apollo Industries (including 1 which is concerning).

Of course Gujarat Apollo Industries 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 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.