Have Kajaria Ceramics Limited (NSE:KAJARIACER) Insiders Been Selling Their Stock?

Anyone interested in Kajaria Ceramics Limited (NSE:KAJARIACER) should probably be aware that a company insider, Dhirendra Joshi, recently divested ₹7.6m worth of shares in the company, at an average price of ₹693 each. Equally important, that sale actually reduced their holding by a full 73% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Kajaria Ceramics

The Last 12 Months Of Insider Transactions At Kajaria Ceramics

Notably, that recent sale by Dhirendra Joshi is the biggest insider sale of Kajaria Ceramics shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹724). 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. We note that the biggest single sale was 73% of Dhirendra Joshi's holding.

Insiders in Kajaria Ceramics didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Kajaria Ceramics 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Kajaria Ceramics insiders own 48% of the company, worth about ₹54b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Kajaria Ceramics Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Kajaria Ceramics.

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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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