Insiders Could Have Profited By Holding onto Vascon Engineers Shares Despite 10% Drop

Even though Vascon Engineers Limited (NSE:VASCONEQ) has fallen by 10% over the past week , insiders who sold ₹146m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹71.04 is still below the current share price.

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.

Check out our latest analysis for Vascon Engineers

Vascon Engineers Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Group CEO & Whole Time Director, Santosh Sundararajan, sold ₹30m worth of shares at a price of ₹60.97 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹52.65. So it is hard to draw any strong conclusion from it.

In the last year Vascon Engineers insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insiders At Vascon Engineers Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Vascon Engineers. Specifically, insiders ditched ₹4.4m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

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. Vascon Engineers insiders own 42% of the company, currently worth about ₹4.9b based on the recent share price. 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 Does This Data Suggest About Vascon Engineers Insiders?

Insiders sold stock recently, but they haven't been buying. 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. While it's good to be aware of 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. For instance, we've identified 3 warning signs for Vascon Engineers (1 can't be ignored) you should be aware of.

Of course Vascon Engineers 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 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.