Have Insiders Sold Ion Exchange (India) Shares Recently?

Some Ion Exchange (India) Limited (NSE:IONEXCHANG) shareholders may be a little concerned to see that the Non-Executive Director, Mahabir Patni, recently sold a substantial ₹67m worth of stock at a price of ₹710 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

Check out our latest analysis for Ion Exchange (India)

Ion Exchange (India) Insider Transactions Over The Last Year

Notably, that recent sale by Non-Executive Director Mahabir Patni was not the only time they sold Ion Exchange (India) shares this year. Earlier in the year, they fetched ₹566 per share in a -₹78m sale. That means that even when the share price was below the current price of ₹649, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.0% of Mahabir Patni's holding.

Ion Exchange (India) insiders didn't buy any shares over the last year. 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Ion Exchange (India) insiders own about ₹25b worth of shares (which is 32% 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.

So What Do The Ion Exchange (India) Insider Transactions Indicate?

Insiders haven't bought Ion Exchange (India) stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Ion Exchange (India) is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Ion Exchange (India) you should be aware of.

Of course Ion Exchange (India) 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.