Insiders Could Have Profited By Holding onto Salasar Techno Engineering Shares Despite 10% Drop

Salasar Techno Engineering Limited's (NSE:SALASAR) stock price has dropped 10% in the previous week, but insiders who sold ₹614m in stock over the past year have had less luck. Given that the average selling price of ₹18.68 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Salasar Techno Engineering

The Chairman & MD, Alok Kumar, made the biggest insider sale in the last 12 months. That single transaction was for ₹148m worth of shares at a price of ₹19.08 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 (₹7.98). So it may not tell us anything about how insiders feel about the current share price.

Salasar Techno Engineering insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Salasar Techno Engineering

I will like Salasar Techno Engineering better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Salasar Techno Engineering Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 26% of Salasar Techno Engineering shares, worth about ₹3.6b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

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

The fact that there have been no Salasar Techno Engineering insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Salasar Techno Engineering, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Salasar Techno Engineering. Be aware that Salasar Techno Engineering is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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.