Don't Ignore The Insider Selling In Salasar Techno Engineering

Some Salasar Techno Engineering Limited (NSE:SALASAR) shareholders may be a little concerned to see that the Chairman & MD, Alok Kumar, recently sold a substantial ₹57m worth of stock at a price of ₹22.03 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.7%.

See our latest analysis for Salasar Techno Engineering

The Last 12 Months Of Insider Transactions At Salasar Techno Engineering

In fact, the recent sale by Chairman & MD Alok Kumar was not their only sale of Salasar Techno Engineering shares this year. Earlier in the year, they fetched ₹19.08 per share in a -₹148m sale. That means that an insider was selling shares at slightly below the current price (₹19.97). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 4.9% of Alok Kumar's stake.

In the last year Salasar Techno Engineering insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Salasar Techno Engineering Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Salasar Techno Engineering insiders own 31% of the company, currently worth about ₹11b 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.

What Might The Insider Transactions At Salasar Techno Engineering Tell Us?

Insiders sold Salasar Techno 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 Salasar Techno Engineering is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that Salasar Techno Engineering has 2 warning signs and it would be unwise to ignore them.

Of course Salasar Techno Engineering 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.