Tantia Constructions Sees Insider Stock Selling

Insiders were net sellers of Tantia Constructions Limited's (NSE:TCLCONS ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Tantia Constructions

The Last 12 Months Of Insider Transactions At Tantia Constructions

In the last twelve months, the biggest single sale by an insider was when the Non-executive Director, Shrish Tapuriah, sold ₹11m worth of shares at a price of ₹43.95 per share. That means that even when the share price was below the current price of ₹45.20, 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. 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 2.7% of Shrish Tapuriah's holding. Shrish Tapuriah was the only individual insider to sell over the last year.

Shrish Tapuriah divested 400.00k shares over the last 12 months at an average price of ₹42.37. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insiders At Tantia Constructions Have Sold Stock Recently

The last quarter saw substantial insider selling of Tantia Constructions shares. In total, Non-executive Director Shrish Tapuriah dumped ₹6.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Tantia Constructions Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Tantia Constructions insiders own 68% of the company, worth about ₹4.8b. 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 Tantia Constructions Insider Transactions Indicate?

An insider hasn't bought Tantia Constructions stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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 Tantia Constructions (3 are a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.