Keep An Eye On Essen Speciality Films As Insider Stock Selling Hits ₹232m

Essen Speciality Films Limited's (NSE:ESFL) stock rose 14% last week, but insiders who sold ₹232m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of ₹461, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Essen Speciality Films Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman & Wholetime Director, Pallav Doshi, for ₹201m worth of shares, at about ₹450 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹242). So it may not shed much light on insider confidence at current levels.

Essen Speciality Films insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Essen Speciality Films

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

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. Essen Speciality Films insiders own 69% of the company, currently worth about ₹4.2b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Essen Speciality Films Insider Transactions Indicate?

The fact that there have been no Essen Speciality Films insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Essen Speciality Films, we can't say the same about the selling of shares. 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. For example, Essen Speciality Films has 5 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Of course Essen Speciality Films 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.