Have Polycab India Limited (NSE:POLYCAB) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 14, 2020
NSEI:POLYCAB

Investors may wish to note that an insider of Polycab India Limited, Kalpattu Chandrashekhar, recently netted ₹4.2m from selling stock, receiving an average price of ₹928. That might not be a huge sum but it was 90% of their personal holding, so we find it a little discouraging.

See our latest analysis for Polycab India

Polycab India Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Ramakrishnan Ramamurthi, sold ₹238m worth of shares at a price of ₹792 per share. That means that even when the share price was below the current price of ₹919, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 14% of Ramakrishnan Ramamurthi's holding.

In the last year Polycab India insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:POLYCAB Insider Trading Volume November 15th 2020

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

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Polycab India insiders own 73% of the company, currently worth about ₹100b based on the recent share price. 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 Polycab India Tell Us?

Insiders sold Polycab India shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Polycab India makes money, and is growing profits. 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. 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. You'd be interested to know, that we found 2 warning signs for Polycab India and we suggest you have a look.

But note: Polycab India 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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