Have Pritika Auto Industries Insiders Been Selling Stock?

We'd be surprised if Pritika Auto Industries Limited (NSE:PRITIKAUTO) shareholders haven't noticed that the MD & Chairman, Harpreet Nibber, recently sold ₹33m worth of stock at ₹30.25 per share. On the bright side, that sale was only 1.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Pritika Auto Industries

The Last 12 Months Of Insider Transactions At Pritika Auto Industries

In fact, the recent sale by Harpreet Nibber was the biggest sale of Pritika Auto Industries shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹28.13. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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. Pritika Auto Industries insiders own 55% of the company, currently worth about ₹2.5b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Pritika Auto Industries Insider Transactions Indicate?

An insider hasn't bought Pritika Auto Industries stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. When we did our research, we found 4 warning signs for Pritika Auto Industries (1 is concerning!) that we believe deserve your full attention.

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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.