Sejal Glass' Insiders' Timely Sale May Have Helped Mitigate 12% Dip in Share Price

By selling ₹50m worth of Sejal Glass Limited (NSE:SEJALLTD) stock at an average sell price of ₹330 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by ₹718m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Sejal Glass

The Last 12 Months Of Insider Transactions At Sejal Glass

In the last twelve months, the biggest single sale by an insider was when the insider, Chandrakant Gogri, sold ₹50m worth of shares at a price of ₹330 per share. That means that an insider was selling shares at slightly below the current price (₹500). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 5.2% of Chandrakant Gogri's holding. The only individual insider seller over the last year was Chandrakant Gogri.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Sejal Glass 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Sejal Glass insiders own 45% of the company, worth about ₹2.3b. 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 Do The Sejal Glass Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Sejal Glass shares in the last quarter. While we feel good about high insider ownership of Sejal Glass, 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 Sejal Glass. To that end, you should learn about the 3 warning signs we've spotted with Sejal Glass (including 1 which is a bit unpleasant).

But note: Sejal Glass may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.