This Insider Has Just Sold Shares In Garware Technical Fibres Limited (NSE:GARFIBRES)

We note that a Garware Technical Fibres Limited (NSE:GARFIBRES) insider, Ashish Goel, recently sold ₹2.5m worth of stock for ₹2,163 per share. It might not be a huge sale, but it did reduce their holding size 35%, hardly encouraging.

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The Last 12 Months Of Insider Transactions At Garware Technical Fibres

Notably, that recent sale by Ashish Goel is the biggest insider sale of Garware Technical Fibres shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹2,183. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 35%of Ashish Goel's holding.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Garware Technical Fibres Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Garware Technical Fibres insiders own 18% of the company, worth about ₹8.4b. 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 Does This Data Suggest About Garware Technical Fibres Insiders?

An insider hasn't bought Garware Technical Fibres stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Garware Technical Fibres.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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This article by Simply Wall St is general in nature. 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.
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