For Transteel Seating Technologies Insiders, Selling ₹88m Of Shares Was A Smart Move

Despite a 18% gain in Transteel Seating Technologies Limited's (NSE:TRANSTEEL) stock price this week, shareholders shouldn't let up. Although prices were relatively low, insiders chose to sell ₹88m worth of stock in the past 12 months. This could be a sign of impending weakness.

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.

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The Last 12 Months Of Insider Transactions At Transteel Seating Technologies

Over the last year, we can see that the biggest insider sale was by the Chief Operating Officer, Nasreen Ibrahim, for ₹64m worth of shares, at about ₹45.55 per share. That means that even when the share price was below the current price of ₹106, 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. This single sale was just 18% of Nasreen Ibrahim's stake.

Transteel Seating Technologies insiders didn't buy any shares over the last year. 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!

View our latest analysis for Transteel Seating Technologies

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Transteel Seating Technologies insiders own 49% of the company, currently worth about ₹1.1b based on the recent share price. 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?

It doesn't really mean much that no insider has traded Transteel Seating Technologies shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Transteel Seating Technologies insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Transteel Seating Technologies. Every company has risks, and we've spotted 3 warning signs for Transteel Seating Technologies (of which 2 are concerning!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.