Don't Ignore The Insider Selling In Transteel Seating Technologies

We wouldn't blame Transteel Seating Technologies Limited (NSE:TRANSTEEL) shareholders if they were a little worried about the fact that Nasreen Ibrahim, the COO & Executive Director recently netted about ₹64m selling shares at an average price of ₹45.46. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

View our latest analysis for Transteel Seating Technologies

Transteel Seating Technologies Insider Transactions Over The Last Year

Notably, that recent sale by Nasreen Ibrahim is the biggest insider sale of Transteel Seating Technologies shares that we've seen in the last year. That means that even when the share price was below the current price of ₹72.10, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 18% of Nasreen Ibrahim's holding.

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 Transteel Seating Technologies 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 Transteel Seating Technologies

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Transteel Seating Technologies insiders own 61% of the company, worth about ₹882m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Transteel Seating Technologies Insiders?

An insider sold Transteel Seating Technologies shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Transteel Seating Technologies. Case in point: We've spotted 5 warning signs for Transteel Seating Technologies you should be aware of, and 3 of these are significant.

But note: Transteel Seating Technologies 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.