Titagarh Wagons Limited (NSE:TWL) insiders who sold earlier this year missed out on a 10% increase in the stock last week

Despite a 10% gain in Titagarh Wagons Limited's (NSE:TWL) stock price this week, shareholders shouldn't let up. In spite of the relatively cheap prices, insiders made the decision to sell ₹1.5m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

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.

See our latest analysis for Titagarh Wagons

The Last 12 Months Of Insider Transactions At Titagarh Wagons

There wasn't any very large single transaction over the last year, but we can still observe some trading.

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: insiders have been buying them).

Insider Ownership of Titagarh Wagons

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Titagarh Wagons insiders own about ₹3.6b worth of shares. That equates to 27% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Titagarh Wagons Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Titagarh Wagons shares in the last quarter. While we feel good about high insider ownership of Titagarh Wagons, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Titagarh Wagons. At Simply Wall St, we've found that Titagarh Wagons has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Titagarh Wagons 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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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.