Don't Ignore The Fact That This Insider Just Sold Some Shares In LGB Forge Limited (NSE:LGBFORGE)

We note that a LGB Forge Limited (NSE:LGBFORGE) insider, Arjun Karivardhan, recently sold ₹295k worth of stock for ₹5.04 per share. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.

Check out our latest analysis for LGB Forge

The Last 12 Months Of Insider Transactions At LGB Forge

While no particular insider transaction stood out, we can still look at the overall trading.

In the last year LGB Forge 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does LGB Forge Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. LGB Forge insiders own about ₹488m worth of shares (which is 46% 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.

So What Do The LGB Forge Insider Transactions Indicate?

Insiders sold LGB Forge shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that LGB Forge is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for LGB Forge you should know about.

Of course LGB Forge 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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