Have Insiders Sold Banswara Syntex Shares Recently?

We wouldn't blame Banswara Syntex Limited (NSE:BANSWRAS) shareholders if they were a little worried about the fact that Ravindra Toshniwal, the MD & Whole Time Director recently netted about ₹84m selling shares at an average price of ₹140. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Banswara Syntex

The Last 12 Months Of Insider Transactions At Banswara Syntex

In fact, the recent sale by Ravindra Toshniwal was the biggest sale of Banswara Syntex shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (₹142). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of Ravindra Toshniwal's holding.

Banswara Syntex insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Banswara Syntex better if I see some big insider buys. While we wait, check out this free list of growing companies 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. We usually like to see fairly high levels of insider ownership. Banswara Syntex insiders own 50% of the company, currently worth about ₹2.4b 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 Do The Banswara Syntex Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 4 warning signs for Banswara Syntex that deserve your attention before buying any shares.

Of course Banswara Syntex 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 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.