Insiders who sold ₹1.2b worth of Olectra Greentech Limited (NSE:OLECTRA were amply compensated

Even though Olectra Greentech Limited (NSE:OLECTRA) stock gained 8.3% last week, insiders who sold ₹1.2b worth of stock over the past year are probably better off. Selling at an average price of ₹6,938, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Before we look at these insider transactions though, you might like to know that our analysis indicates that OLECTRA is potentially overvalued!

The Last 12 Months Of Insider Transactions At Olectra Greentech

In the last twelve months, the biggest single sale by an insider was when the insider, Lam Sashikumar, sold ₹1.1b worth of shares at a price of ₹35,160 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹638. So it is hard to draw any strong conclusion from it.

Olectra Greentech insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Olectra Greentech Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Olectra Greentech insiders own about ₹3.0b worth of shares. That equates to 5.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Olectra Greentech Insiders?

The fact that there have been no Olectra Greentech insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Olectra Greentech insider transactions don't fill us with confidence. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.