Insiders Sold Vinyl Chemicals (India) At ₹804, Meanwhile Stock Sits Near ₹432

Despite the fact that Vinyl Chemicals (India) Limited's (NSE:VINYLINDIA) value has dropped 10% in the last week insiders who sold ₹31m worth of stock in the past 12 months have had less success. Given that the average selling price of ₹804 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Vinyl Chemicals (India)

The Last 12 Months Of Insider Transactions At Vinyl Chemicals (India)

The insider, Harish Parekh, made the biggest insider sale in the last 12 months. That single transaction was for ₹9.2m worth of shares at a price of ₹917 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹432). So it is hard to draw any strong conclusion from it.

In the last year Vinyl Chemicals (India) insiders didn't buy any company stock. 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!

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Insider Ownership Of Vinyl Chemicals (India)

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Vinyl Chemicals (India) insiders have about 3.5% of the stock, worth approximately ₹279m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Vinyl Chemicals (India) Tell Us?

The fact that there have been no Vinyl Chemicals (India) insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Vinyl Chemicals (India) insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Vinyl Chemicals (India) has 2 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.