Have Lorenzini Apparels Insiders Been Selling Stock?

We note that the Lorenzini Apparels Limited (NSE:LAL) MD,CFO & Executive Chairman, Sandeep Jain, recently sold ₹6.3m worth of stock for ₹11.30 per share. On the bright side, that's just a small sale and only reduced their holding by 0.6%.

Check out our latest analysis for Lorenzini Apparels

Lorenzini Apparels Insider Transactions Over The Last Year

In fact, the recent sale by Sandeep Jain was the biggest sale of Lorenzini Apparels shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (₹11.94). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 0.6% of Sandeep Jain's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Of Lorenzini Apparels

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lorenzini Apparels insiders own about ₹1.5b worth of shares (which is 68% 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 Does This Data Suggest About Lorenzini Apparels Insiders?

An insider sold Lorenzini Apparels shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Lorenzini Apparels makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 3 warning signs with Lorenzini Apparels and understanding these should be part of your investment process.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.