Shareholders May Not Overlook Pritika Auto Industries Insiders Selling ₹98m In Stock

Pritika Auto Industries Limited's (NSE:PRITIKAUTO) stock rose 10% last week, but insiders who sold ₹98m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of ₹27.92, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

Our free stock report includes 3 warning signs investors should be aware of before investing in Pritika Auto Industries. Read for free now.

Pritika Auto Industries Insider Transactions Over The Last Year

The MD & Chairman, Harpreet Nibber, made the biggest insider sale in the last 12 months. That single transaction was for ₹51m worth of shares at a price of ₹26.65 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹16.99). So it may not shed much light on insider confidence at current levels. Harpreet Nibber was the only individual insider to sell over the last year.

Harpreet Nibber sold a total of 3.50m shares over the year at an average price of ₹27.92. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Pritika Auto Industries

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Does Pritika Auto Industries Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Pritika Auto Industries insiders own 44% of the company, worth about ₹1.4b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Pritika Auto Industries Insiders?

It doesn't really mean much that no insider has traded Pritika Auto Industries shares in the last quarter. While we feel good about high insider ownership of Pritika Auto Industries, we can't say the same about the selling of shares. 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. At Simply Wall St, we found 3 warning signs for Pritika Auto Industries that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.