Have Insiders Sold Kanani Industries Shares Recently?

Anyone interested in Kanani Industries Limited (NSE:KANANIIND) should probably be aware that the MD & Executive Director, Harshil Kanani, recently divested ₹8.7m worth of shares in the company, at an average price of ₹2.91 each. On the bright side, that sale was only 5.4% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Kanani Industries

The Last 12 Months Of Insider Transactions At Kanani Industries

In fact, the recent sale by MD & Executive Director Harshil Kanani was not their only sale of Kanani Industries shares this year. They previously made an even bigger sale of -₹28m worth of shares at a price of ₹3.06 per share. So we know that an insider sold shares at around the present share price of ₹2.91. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Harshil Kanani divested 28.04m shares over the last 12 months at an average price of ₹3.45. 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!

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

Does Kanani Industries Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Kanani Industries insiders own about ₹312m worth of shares (which is 54% 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 Kanani Industries Insider Transactions Indicate?

An insider hasn't bought Kanani 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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've found that Kanani Industries has 4 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.