Despite Hitting ₹6.00, Jiwanram Sheoduttrai Industries Insiders Still Sold Too Soon

Despite the fact that Jiwanram Sheoduttrai Industries Limited's (NSE:JIWANRAM) value has dropped 14% in the last week insiders who sold ₹28m worth of stock in the past 12 months have had less success. The average selling price of ₹14.58 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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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The Last 12 Months Of Insider Transactions At Jiwanram Sheoduttrai Industries

In the last twelve months, the biggest single sale by an insider was when the MD & Director, Alok Prakash, sold ₹15m worth of shares at a price of ₹15.24 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 (₹6.00). So it is hard to draw any strong conclusion from it. Alok Prakash was the only individual insider to sell over the last year.

Alok Prakash ditched 1.92m shares over the year. The average price per share was ₹14.58. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Jiwanram Sheoduttrai Industries

I will like Jiwanram Sheoduttrai Industries better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Jiwanram Sheoduttrai Industries

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Jiwanram Sheoduttrai Industries insiders own 63% of the company, worth about ₹94m. 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 Do The Jiwanram Sheoduttrai Industries Insider Transactions Indicate?

The fact that there have been no Jiwanram Sheoduttrai Industries insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Jiwanram Sheoduttrai Industries, we can't say the same about the selling of shares. While it's good to be aware of 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. At Simply Wall St, we found 2 warning signs for Jiwanram Sheoduttrai Industries that deserve your attention before buying any shares.

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 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.