This Insider Has Just Sold Shares In Vascon Engineers

We note that a Vascon Engineers Limited (NSE:VASCONEQ) insider, Lalitkumar Panpalia, recently sold ₹5.0m worth of stock for ₹72.00 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.

See our latest analysis for Vascon Engineers

Vascon Engineers Insider Transactions Over The Last Year

The Group CEO & Whole Time Director, Santosh Sundararajan, made the biggest insider sale in the last 12 months. That single transaction was for ₹30m worth of shares at a price of ₹60.97 each. That means that an insider was selling shares at slightly below the current price (₹75.51). 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 4.9% of Santosh Sundararajan's holding.

Over the last year we saw more insider selling of Vascon Engineers shares, than buying. The sellers received a price of around ₹63.44, on average. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Vascon Engineers better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Vascon Engineers Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. It appears that Vascon Engineers insiders own 28% of the company, worth about ₹4.7b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Vascon Engineers Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vascon Engineers. Every company has risks, and we've spotted 4 warning signs for Vascon Engineers you should know about.

But note: Vascon Engineers may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com