Have Insiders Sold Pitti Engineering Shares Recently?

We wouldn't blame Pitti Engineering Limited (NSE:PITTIENG) shareholders if they were a little worried about the fact that Akshay Pitti, the Vice Chairman & MD recently netted about ₹946m selling shares at an average price of ₹1,407. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Pitti Engineering

In fact, the recent sale by Akshay Pitti was the biggest sale of Pitti Engineering shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of ₹1,416, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 16% of Akshay Pitti's stake.

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!

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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 Pitti Engineering insiders own 29% of the company, worth about ₹15b. 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 Pitti Engineering Insiders?

An insider sold Pitti Engineering shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Pitti Engineering is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 3 warning signs for Pitti Engineering you should be aware of, and 1 of them is significant.

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 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.