Insiders Sold Morarjee Textiles At ₹21.41, Meanwhile Stock Sits Near ₹13.15

Morarjee Textiles Limited's (NSE:MORARJEE) value has fallen 14% in the last week, but insiders who sold ₹15m worth of stock over the last year have had less success. The average selling price of ₹21.41 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Morarjee Textiles

The Last 12 Months Of Insider Transactions At Morarjee Textiles

The insider, Sunita Gupta, made the biggest insider sale in the last 12 months. That single transaction was for ₹5.8m worth of shares at a price of ₹23.47 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹13.15. So it may not tell us anything about how insiders feel about the current share price.

Morarjee Textiles insiders didn't buy any shares over the last year. 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!

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

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 8.6% of Morarjee Textiles shares, worth about ₹45m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Morarjee Textiles Tell Us?

The fact that there have been no Morarjee Textiles insider transactions recently certainly doesn't bother us. Our analysis of Morarjee Textiles insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Morarjee Textiles. To help with this, we've discovered 4 warning signs (3 make us uncomfortable!) that you ought to be aware of before buying any shares in Morarjee Textiles.

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.