This Insider Has Just Sold Shares In Pritika Auto Industries

We'd be surprised if Pritika Auto Industries Limited (NSE:PRITIKAUTO) shareholders haven't noticed that the MD & Chairman, Harpreet Nibber, recently sold ₹14m worth of stock at ₹27.63 per share. On the bright side, that sale was only 0.7% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Pritika Auto Industries

Pritika Auto Industries Insider Transactions Over The Last Year

Notably, that recent sale by MD & Chairman Harpreet Nibber was not the only time they sold Pritika Auto Industries shares this year. They previously made an even bigger sale of -₹51m worth of shares at a price of ₹26.65 per share. So we know that an insider sold shares at around the present share price of ₹26.11. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Harpreet Nibber ditched 3.50m shares over the year. The average price per share was ₹27.92. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Pritika Auto Industries Boast High 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. Pritika Auto Industries insiders own about ₹2.2b worth of shares (which is 45% of the company). 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 Does This Data Suggest About Pritika Auto Industries Insiders?

An insider sold Pritika Auto Industries shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. At Simply Wall St, we've found that Pritika Auto Industries has 5 warning signs (3 make us uncomfortable!) that deserve your attention before going any further with your analysis.

Of course Pritika Auto Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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.