Insiders Sold V-MARC India At ₹401, Meanwhile Stock Sits Near ₹359

V-MARC India Limited's (NSE:VMARCIND) value has fallen 10% in the last week, but insiders who sold ₹40m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹401 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for V-MARC India

V-MARC India Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Meenakshi Garg, sold ₹40m worth of shares at a price of ₹401 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹359. So it may not tell us anything about how insiders feel about the current share price. Meenakshi Garg was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like V-MARC India 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.

Insider Ownership Of V-MARC India

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. V-MARC India insiders own about ₹5.7b worth of shares (which is 70% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At V-MARC India Tell Us?

The fact that there have been no V-MARC India insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of V-MARC India, 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 V-MARC India. When we did our research, we found 2 warning signs for V-MARC India (1 can't be ignored!) that we believe deserve your full attention.

But note: V-MARC India 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.