Have Insiders Sold Tarmat Limited (NSE:TARMAT) Shares Recently?

Investors may wish to note that an insider of Tarmat Limited, Jerry Varghese, recently netted ₹6.7m from selling stock, receiving an average price of ₹38.34. On the bright side, that's just a small sale and only reduced their holding by 7.1%.

View our latest analysis for Tarmat

The Last 12 Months Of Insider Transactions At Tarmat

In fact, the recent sale by Jerry Varghese was the biggest sale of Tarmat shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹39.65, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 7.1%of Jerry Varghese's holding.

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!

I will like Tarmat better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of Tarmat

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. Tarmat insiders own about ₹295m worth of shares (which is 58% of the company). 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 Tarmat Insider Transactions Indicate?

An insider sold Tarmat shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Tarmat is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Tarmat you should be aware of, and 2 of these are significant.

Of course Tarmat 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, but not derivative transactions.

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