Insiders Sold NRB Industrial Bearings At ₹38.29, Meanwhile Stock Sits Near ₹26.93

Even though NRB Industrial Bearings Limited (NSE:NIBL) has fallen by 19% over the past week , insiders who sold ₹11m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹38.29 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for NRB Industrial Bearings

NRB Industrial Bearings Insider Transactions Over The Last Year

The insider, Jasmine Pillai, made the biggest insider sale in the last 12 months. That single transaction was for ₹5.7m worth of shares at a price of ₹41.23 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹26.93). So it is hard to draw any strong conclusion from it.

In the last year NRB Industrial Bearings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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: Most of them are flying under the radar).

Insiders At NRB Industrial Bearings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at NRB Industrial Bearings. Specifically, insiders ditched ₹11m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Insiders own 29% of NRB Industrial Bearings shares, worth about ₹192m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About NRB Industrial Bearings Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. Be aware that NRB Industrial Bearings is showing 5 warning signs in our investment analysis, and 3 of those can't be ignored...

Of course NRB Industrial Bearings 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.