Jiwanram Sheoduttrai Industries Up 17%, But Some Insiders Miss Out

Even though Jiwanram Sheoduttrai Industries Limited (NSE:JIWANRAM) stock gained 17% last week, insiders who sold ₹28m worth of stock over the past year are probably better off. Selling at an average price of ₹14.58, 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Jiwanram Sheoduttrai Industries

The Last 12 Months Of Insider Transactions At Jiwanram Sheoduttrai Industries

The MD & Director, Alok Prakash, made the biggest insider sale in the last 12 months. That single transaction was for ₹15m worth of shares at a price of ₹15.24 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹10.45. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Alok Prakash.

Alok Prakash divested 1.92m shares over the last 12 months at an average price of ₹14.58. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Jiwanram Sheoduttrai Industries Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Jiwanram Sheoduttrai Industries. Specifically, MD & Director Alok Prakash ditched ₹28m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Jiwanram Sheoduttrai Industries insiders own 63% of the company, currently worth about ₹163m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Jiwanram Sheoduttrai Industries Tell Us?

An insider hasn't bought Jiwanram Sheoduttrai Industries stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Jiwanram Sheoduttrai Industries has 5 warning signs (3 are significant!) that deserve your attention before going any further with your analysis.

But note: Jiwanram Sheoduttrai Industries 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 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.