Have Insiders Sold LGB Forge Limited (NSE:LGBFORGE) Shares Recently?

We note that a LGB Forge Limited (NSE:LGBFORGE) insider, Vijayshree Vijayakumar, recently sold ₹858k worth of stock for ₹2.96 per share. It wasn't a huge sale, but it did reduce their holding by 36%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At LGB Forge

In fact, the recent sale by Vijayshree Vijayakumar was the biggest sale of LGB Forge shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (₹3.10). 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. 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. We note that the biggest single sale was only 36%of Vijayshree Vijayakumar's holding.

Vijayshree Vijayakumar divested 881.89k shares over the last 12 months at an average price of ₹2.67. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. LGB Forge insiders own 46% of the company, currently worth about ₹341m based on the recent share price. 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 Does This Data Suggest About LGB Forge Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. 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. Case in point: We've spotted 3 warning signs for LGB Forge you should be aware of.

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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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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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