Have MITCON Consultancy & Engineering Services Limited (NSE:MITCON) Insiders Been Selling Their Stock?

We note that a MITCON Consultancy & Engineering Services Limited (NSE:MITCON) insider, Ajita Agarwal, recently sold ₹1.3m worth of stock for ₹108 per share. It wasn't a huge sale, but it did reduce their holding by 11%. This does not instill confidence.

Check out our latest analysis for MITCON Consultancy & Engineering Services

The Last 12 Months Of Insider Transactions At MITCON Consultancy & Engineering Services

The Director, Pradeep Bavadekar, made the biggest insider sale in the last 12 months. That single transaction was for ₹10m worth of shares at a price of ₹40.85 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹125. 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. 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. We note that the biggest single sale was only 48% of Pradeep Bavadekar's holding.

Happily, we note that in the last year insiders paid ₹20m for 436.00k shares. But they sold 350.00k shares for ₹17m. In the last twelve months there was more buying than selling by MITCON Consultancy & Engineering Services insiders. The average buy price was around ₹46.16. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

MITCON Consultancy & Engineering Services is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does MITCON Consultancy & Engineering Services Boast High 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. MITCON Consultancy & Engineering Services insiders own about ₹335m worth of shares. That equates to 20% 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.

So What Do The MITCON Consultancy & Engineering Services Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about MITCON Consultancy & Engineering Services. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MITCON Consultancy & Engineering Services. At Simply Wall St, we've found that MITCON Consultancy & Engineering Services has 4 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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.