Insiders Who Sold Kay Cee Energy & Infra Missed Out On 10% Stock Increase

Last week, Kay Cee Energy & Infra Limited's (NSE:KCEIL) stock jumped 10%, but insiders who sold ₹18m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹384, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 3 warning signs about Kay Cee Energy & Infra. View them for free.

Kay Cee Energy & Infra Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Divyanshu Jain, for ₹15m worth of shares, at about ₹385 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹242. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 17.00k shares for ₹3.8m. But they sold 46.00k shares for ₹18m. Over the last year we saw more insider selling of Kay Cee Energy & Infra shares, than buying. 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!

View our latest analysis for Kay Cee Energy & Infra

I will like Kay Cee Energy & Infra better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Kay Cee Energy & Infra

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. We usually like to see fairly high levels of insider ownership. Kay Cee Energy & Infra insiders own about ₹1.9b worth of shares (which is 71% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Kay Cee Energy & Infra Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Kay Cee Energy & Infra, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Kay Cee Energy & Infra (2 are a bit unpleasant!) that we believe deserve your full attention.

But note: Kay Cee Energy & Infra may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.