Lokesh Machines Insiders Got A Good Deal Selling At ₹197

Even though Lokesh Machines Limited (NSE:LOKESHMACH) stock gained 22% last week, insiders who sold ₹5.1m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹197, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Lokesh Machines

The Last 12 Months Of Insider Transactions At Lokesh Machines

The insider, M. Vijayalakshmi, made the biggest insider sale in the last 12 months. That single transaction was for ₹5.1m worth of shares at a price of ₹199 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹452. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 3.0% of M. Vijayalakshmi's holding. M. Vijayalakshmi was the only individual insider to sell shares in the last twelve months.

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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Lokesh Machines Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Lokesh Machines insiders own 53% of the company, worth about ₹4.5b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Lokesh Machines Tell Us?

The fact that there have been no Lokesh Machines insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Lokesh Machines, we can't say the same about the selling of shares. 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. At Simply Wall St, we found 2 warning signs for Lokesh Machines that deserve your attention before buying any shares.

But note: Lokesh Machines 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 of direct interests only, but not derivative transactions or indirect interests.

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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.