Have Insiders Sold Le Merite Exports Shares Recently?

We'd be surprised if Le Merite Exports Limited (NSE:LEMERITE) shareholders haven't noticed that the MD, CFO & Director, Abhishek Lath, recently sold ₹27m worth of stock at ₹300 per share. On the bright side, that sale was only 0.8% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Le Merite Exports

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Sweta Lath, sold ₹105m worth of shares at a price of ₹229 per share. That means that even when the share price was below the current price of ₹298, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 32% of Sweta Lath's holding.

In total, Le Merite Exports insiders sold more than they bought over the last year. 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!

Check out our latest analysis for Le Merite Exports

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Insider Ownership

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. We usually like to see fairly high levels of insider ownership. Le Merite Exports insiders own 65% of the company, currently worth about ₹4.5b based on the recent share price. 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 Le Merite Exports Insiders?

An insider sold Le Merite Exports shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Le Merite Exports is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Le Merite Exports. Our analysis shows 4 warning signs for Le Merite Exports (2 are significant!) and we strongly recommend you look at them before investing.

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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.