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

We note that a LGB Forge Limited (NSE:LGBFORGE) insider, Arjun Karivardhan, recently sold ₹810k worth of stock for ₹4.05 per share. While that isn't a lot of money, it was a substantial 80% of their holding, so certainly isn't a good sign.

View our latest analysis for LGB Forge

The Last 12 Months Of Insider Transactions At LGB Forge

Notably, that recent sale by Arjun Karivardhan 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 ₹3.90. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

LGB Forge insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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 46% of the company, currently worth about ₹431m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About LGB Forge Insiders?

Insiders haven't bought LGB Forge stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, LGB Forge makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. For example - LGB Forge has 3 warning signs we think you should be aware of.

But note: LGB Forge 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, 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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