Don't Ignore The Insider Selling In Jash Engineering

Some Jash Engineering Limited (NSE:JASH) shareholders may be a little concerned to see that the Director, Axel Schutte, recently sold a substantial ₹274m worth of stock at a price of ₹576 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

See our latest analysis for Jash Engineering

The Last 12 Months Of Insider Transactions At Jash Engineering

Notably, that recent sale by Axel Schutte is the biggest insider sale of Jash Engineering shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹597. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 16% of Axel Schutte's holding.

In the last year Jash Engineering insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Jash Engineering Boast High Insider Ownership?

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. Jash Engineering insiders own 52% of the company, currently worth about ₹19b 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 Do The Jash Engineering Insider Transactions Indicate?

Insiders haven't bought Jash Engineering stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Jash Engineering makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Jash Engineering. When we did our research, we found 3 warning signs for Jash Engineering (1 is potentially serious!) that we believe deserve your full attention.

Of course Jash Engineering 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.