Don't Ignore The Fact That This Insider Just Sold Some Shares In S.S. Infrastructure Development Consultants Limited (NSE:SSINFRA)

By
Simply Wall St
Published
January 15, 2022
NSEI:SSINFRA
Source: Shutterstock

Anyone interested in S.S. Infrastructure Development Consultants Limited (NSE:SSINFRA) should probably be aware that the Chairman of the Board & MD, Satyanarayana Sundara, recently divested ₹7.8m worth of shares in the company, at an average price of ₹14.10 each. The eyebrow raising move amounted to a reduction of 13% in their holding.

See our latest analysis for S.S. Infrastructure Development Consultants

The Last 12 Months Of Insider Transactions At S.S. Infrastructure Development Consultants

Notably, that recent sale by Satyanarayana Sundara is the biggest insider sale of S.S. Infrastructure Development Consultants shares that we've seen in the last year. That means that even when the share price was below the current price of ₹16.25, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 13%of Satyanarayana Sundara's holding.

S.S. Infrastructure Development Consultants 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:SSINFRA Insider Trading Volume January 15th 2022

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

Does S.S. Infrastructure Development Consultants 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. S.S. Infrastructure Development Consultants insiders own 58% of the company, currently worth about ₹133m based on the recent share price. 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 Does This Data Suggest About S.S. Infrastructure Development Consultants Insiders?

Insiders sold S.S. Infrastructure Development Consultants shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 6 warning signs for S.S. Infrastructure Development Consultants (2 are potentially serious!) and we strongly recommend you look at them before investing.

But note: S.S. Infrastructure Development Consultants 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, but not derivative transactions.

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