Stock Analysis

Shantanu Khosla Is The MD & Executive Director of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) And They Just Sold 100% Of Their Shares

NSEI:CROMPTON
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We wouldn't blame Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) shareholders if they were a little worried about the fact that Shantanu Khosla, the MD & Executive Director recently netted about ₹41m selling shares at an average price of ₹405. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Crompton Greaves Consumer Electricals

The Last 12 Months Of Insider Transactions At Crompton Greaves Consumer Electricals

In fact, the recent sale by Shantanu Khosla was the biggest sale of Crompton Greaves Consumer Electricals shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹399. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:CROMPTON Insider Trading Volume February 12th 2021

I will like Crompton Greaves Consumer Electricals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Crompton Greaves Consumer Electricals Boast High 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. Our information indicates that Crompton Greaves Consumer Electricals insiders own about ₹64m worth of shares. This level of insider ownership is notably low, and not very encouraging.

So What Does This Data Suggest About Crompton Greaves Consumer Electricals Insiders?

An insider sold Crompton Greaves Consumer Electricals shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Case in point: We've spotted 3 warning signs for Crompton Greaves Consumer Electricals you should be aware of.

But note: Crompton Greaves Consumer Electricals 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, but not derivative transactions.

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