Stock Analysis

DCM Nouvelle Limited (NSE:DCMNVL) insiders made a handsome profit after selling stock presently valued at ₹170 apiece for ₹284

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NSEI:DCMNVL
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Last week, DCM Nouvelle Limited's (NSE:DCMNVL) stock jumped 11%, but insiders who sold ₹1.4m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹284, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our analysis indicates that DCMNVL is potentially undervalued!

DCM Nouvelle Insider Transactions Over The Last Year

While no particular insider transaction stood out, we can still look at the overall trading.

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!

insider-trading-volume
NSEI:DCMNVL Insider Trading Volume December 1st 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of DCM Nouvelle

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. DCM Nouvelle insiders own about ₹1.9b worth of shares (which is 59% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The DCM Nouvelle Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the DCM Nouvelle insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for DCM Nouvelle you should know about.

But note: DCM Nouvelle 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.

Valuation is complex, but we're helping make it simple.

Find out whether DCM Nouvelle is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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