This Veto Switchgears and Cables Insider Reduced Their Stake By 94%

Insiders were net sellers of Veto Switchgears and Cables Limited's (NSE:VETO ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Veto Switchgears and Cables

Veto Switchgears and Cables Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Vice President of Marketing, Vasudev Lalwani, for ₹14m worth of shares, at about ₹140 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹140. 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. 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. This single sale was 94% of Vasudev Lalwani's stake. The only individual insider seller over the last year was Vasudev Lalwani.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Veto Switchgears and Cables better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Veto Switchgears and Cables insiders own about ₹514m worth of shares. That equates to 19% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Veto Switchgears and Cables Tell Us?

The fact that there have been no Veto Switchgears and Cables insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Veto Switchgears and Cables, 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 Veto Switchgears and Cables. In terms of investment risks, we've identified 3 warning signs with Veto Switchgears and Cables and understanding these should be part of your investment process.

Of course Veto Switchgears and Cables 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.