Have Sterling and Wilson Solar Limited (NSE:SWSOLAR) Insiders Been Selling Their Stock?

Some Sterling and Wilson Solar Limited (NSE:SWSOLAR) shareholders may be a little concerned to see that the Chairman, Khurshed Daruvala, recently sold a substantial ₹694m worth of stock at a price of ₹231 per share. However, that sale only accounted for 7.3% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Sterling and Wilson Solar

The Last 12 Months Of Insider Transactions At Sterling and Wilson Solar

Notably, that recent sale by Khurshed Daruvala is the biggest insider sale of Sterling and Wilson Solar shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹268. 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 7.3%of Khurshed Daruvala's holding.

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!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Sterling and Wilson Solar insiders own 27% of the company, currently worth about ₹12b 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 Sterling and Wilson Solar Tell Us?

An insider sold Sterling and Wilson Solar shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we've found that Sterling and Wilson Solar has 6 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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