TD Power Systems Insiders Sold ₹131m Of Shares Suggesting Hesitancy

Quite a few TD Power Systems Limited (NSE:TDPOWERSYS) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for TD Power Systems

The Last 12 Months Of Insider Transactions At TD Power Systems

Over the last year, we can see that the biggest insider sale was by the COO & Head of SBU 2, Ramakrishna Varna, for ₹10m worth of shares, at about ₹341 per share. That means that even when the share price was below the current price of ₹382, 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. It is worth noting that this sale was only 8.1% of Ramakrishna Varna's holding.

Insiders in TD Power Systems didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insiders At TD Power Systems Have Sold Stock Recently

The last quarter saw substantial insider selling of TD Power Systems shares. In total, insiders dumped ₹13m 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 TD Power Systems Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that TD Power Systems insiders own 22% of the company, worth about ₹13b. 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 TD Power Systems Insiders?

Insiders haven't bought TD Power Systems 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. But since TD Power Systems 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. 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. Every company has risks, and we've spotted 2 warning signs for TD Power Systems you should know about.

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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