Stock Analysis

With Crompton Greaves Consumer Electricals Limited's (NSE:CROMPTON)) price down 5.7% this week, insiders might find some solace having sold ₹2.1b worth of shares earlier this year.

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Insiders seem to have made the most of their holdings by selling ₹2.1b worth of Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) stock at an average sell price of ₹387 during the past year. The company's market valuation decreased by ₹11b after the stock price dropped 5.7% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Crompton Greaves Consumer Electricals

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

In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Shantanu Khosla, sold ₹495m worth of shares at a price of ₹368 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹290). So it may not shed much light on insider confidence at current levels.

In the last year Crompton Greaves Consumer Electricals insiders didn't buy any company stock. 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!

NSEI:CROMPTON Insider Trading Volume March 16th 2023

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.

Insider Ownership Of Crompton Greaves Consumer Electricals

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. Our data indicates that Crompton Greaves Consumer Electricals insiders own about ₹648m worth of shares (which is 0.4% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Crompton Greaves Consumer Electricals Insider Transactions Indicate?

The fact that there have been no Crompton Greaves Consumer Electricals insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Crompton Greaves Consumer Electricals insider transactions don't fill us with confidence. 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 2 warning signs for Crompton Greaves Consumer Electricals that deserve your attention before buying any shares.

Of course Crompton Greaves Consumer Electricals 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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