This Insider Has Just Sold Shares In Technocraft Industries (India) Limited (NSE:TIIL)

Simply Wall St
March 18, 2022
Source: Shutterstock

Investors may wish to note that an insider of Technocraft Industries (India) Limited, Subhash Khandelwal, recently netted ₹3.2m from selling stock, receiving an average price of ₹1,022. It might not be a huge sale, but it did reduce their holding size 34%, hardly encouraging.

See our latest analysis for Technocraft Industries (India)

Technocraft Industries (India) Insider Transactions Over The Last Year

In fact, the recent sale by insider Subhash Khandelwal was not their only sale of Technocraft Industries (India) shares this year. They previously made an even bigger sale of -₹4.5m worth of shares at a price of ₹788 per share. That means that an insider was selling shares at slightly below the current price (₹1,057). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 39% of Subhash Khandelwal's holding.

All up, insiders sold more shares in Technocraft Industries (India) than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:TIIL Insider Trading Volume March 18th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Technocraft Industries (India) insiders own 73% of the company, worth about ₹19b. 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 Technocraft Industries (India) Tell Us?

An insider hasn't bought Technocraft Industries (India) stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Technocraft Industries (India) makes money, and is growing profits. 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. Every company has risks, and we've spotted 3 warning signs for Technocraft Industries (India) 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.