One KNR Constructions Insider Has Reduced Their Stake

Looking at KNR Constructions Limited's (NSE:KNRCON ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

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.

We've discovered 1 warning sign about KNR Constructions. View them for free.

KNR Constructions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Kamidi Reddy, for ₹1.9b worth of shares, at about ₹388 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹242. So it is hard to draw any strong conclusion from it. Kamidi Reddy was the only individual insider to sell shares in the last twelve months.

Kamidi Reddy sold a total of 5.94m shares over the year at an average price of ₹352. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 KNR Constructions

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does KNR Constructions Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 KNR Constructions insiders own 49% of the company, worth about ₹33b. 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 KNR Constructions Insider Transactions Indicate?

It doesn't really mean much that no insider has traded KNR Constructions shares in the last quarter. While we feel good about high insider ownership of KNR Constructions, we can't say the same about the selling of shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that KNR Constructions has 1 warning sign and it would be unwise to ignore it.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.