Stock Analysis

Insiders Find Solace Selling ₹67m In Stock With International Conveyors' Price Down 12%

Published
NSEI:INTLCONV
Source: Shutterstock

Over the past year, insiders sold ₹67m worth of International Conveyors Limited (NSE:INTLCONV) stock at an average price of ₹68.95 per share allowing them to get the most out of their money. After the stock price dropped 12% last week, the company's market value declined by ₹754m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for International Conveyors

International Conveyors Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Khushali Vanzara, sold ₹8.0m worth of shares at a price of ₹50.17 per share. That means that an insider was selling shares at slightly below the current price (₹87.00). 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. It is worth noting that this sale was 83% of Khushali Vanzara's holding.

In the last year International Conveyors insiders didn't buy any company stock. 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!

insider-trading-volume
NSEI:INTLCONV Insider Trading Volume December 9th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

International Conveyors Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at International Conveyors. In total, insiders dumped ₹37m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does International Conveyors 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. A high insider ownership often makes company leadership more mindful of shareholder interests. International Conveyors insiders own about ₹1.5b worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The International Conveyors Insider Transactions Indicate?

Insiders sold International Conveyors shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, International Conveyors makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with International Conveyors and understanding these should be part of your investment process.

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.

Valuation is complex, but we're helping make it simple.

Find out whether International Conveyors is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis