Don't Ignore The Fact That This Insider Just Sold Some Shares In Arvind Limited (NSE:ARVIND)

We note that a Arvind Limited (NSE:ARVIND) insider, Samvegbhai Sheth, recently sold ₹1.1m worth of stock for ₹41.04 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.

See our latest analysis for Arvind

Arvind Insider Transactions Over The Last Year

Notably, that recent sale by Samvegbhai Sheth is the biggest insider sale of Arvind shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹40.55. While insider selling is a negative, to us, it is more negative if the shares are sold 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).

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Arvind

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Arvind, though insiders do hold about ₹41m worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Arvind Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Arvind (1 is concerning!) and we strongly recommend you look at these before investing.

Of course Arvind 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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