An Insider At Servotech Renewable Power System Lowered Their Holding Recently

From what we can see, insiders were net sellers in Servotech Renewable Power System Limited's (NSE:SERVOTECH ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Servotech Renewable Power System

In the last twelve months, the biggest single sale by an insider was when the Founder, Raman Bhatia, sold ₹105m worth of shares at a price of ₹132 per share. That means that even when the share price was slightly below the current price of ₹133, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 0.8% of Raman Bhatia's holding. Raman Bhatia was the only individual insider to sell over the last year. Notably Raman Bhatia was also the biggest buyer, having purchased ₹8.4k worth of shares.

Raman Bhatia ditched 1.10m shares over the year. The average price per share was ₹145. 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!

See our latest analysis for Servotech Renewable Power System

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Does Servotech Renewable Power System Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Servotech Renewable Power System insiders own 46% of the company, worth about ₹13b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Servotech Renewable Power System Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Servotech Renewable Power System insiders selling. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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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.