Insiders At Vintage Coffee and Beverages Sold ₹75m Of Stock Potentially Indicating Weakness

Last week, Vintage Coffee and Beverages Limited's (NSE:VINCOFE) stock jumped 12%, but insiders who sold ₹75m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹120, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

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.

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The Last 12 Months Of Insider Transactions At Vintage Coffee and Beverages

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Vishal Jethalia, for ₹41m worth of shares, at about ₹123 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹103. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Vishal Jethalia.

Vishal Jethalia sold a total of 624.00k shares over the year at an average price of ₹120. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Vintage Coffee and Beverages

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 36% of Vintage Coffee and Beverages shares, worth about ₹4.6b. 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 Does This Data Suggest About Vintage Coffee and Beverages Insiders?

It doesn't really mean much that no insider has traded Vintage Coffee and Beverages shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Vintage Coffee and Beverages insider transactions don't fill us with confidence. Along with insider transactions, I recommend checking if Vintage Coffee and Beverages is growing revenue. This free chart of historic revenue and earnings should make that easy.

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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.