Amber Enterprises India Chairman Emeritus Kartar Singh Sells 35% Of Holding

Some Amber Enterprises India Limited (NSE:AMBER) shareholders may be a little concerned to see that the Chairman Emeritus, Kartar Singh, recently sold a substantial ₹600m worth of stock at a price of ₹4,000 per share. That sale reduced their total holding by 35% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Amber Enterprises India

In fact, the recent sale by Kartar Singh was the biggest sale of Amber Enterprises India shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹3,968. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Amber Enterprises India 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!

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Insider Ownership Of Amber Enterprises India

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Amber Enterprises India insiders own 43% of the company, worth about ₹58b. 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 Do The Amber Enterprises India Insider Transactions Indicate?

An insider sold Amber Enterprises India 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 Amber Enterprises India. Every company has risks, and we've spotted 1 warning sign for Amber Enterprises India you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com