Have LGB Forge Limited (NSE:LGBFORGE) Insiders Been Selling Their Stock?

We note that a LGB Forge Limited (NSE:LGBFORGE) insider, Vijayshree Vijayakumar, recently sold ₹68k worth of stock for ₹2.65 per share. However we note that the sale only shrunk their holding by 1.7%.

Check out our latest analysis for LGB Forge

The Last 12 Months Of Insider Transactions At LGB Forge

Notably, that recent sale by Vijayshree Vijayakumar is the biggest insider sale of LGB Forge shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹2.50. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Vijayshree Vijayakumar divested 31.59k shares over the last 12 months at an average price of ₹2.63. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like LGB Forge better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that LGB Forge insiders own 47% of the company, worth about ₹283m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At LGB Forge Tell Us?

An insider 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that LGB Forge is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...

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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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