Have Insiders Sold Nandan Denim Shares Recently?

We wouldn't blame Nandan Denim Limited (NSE:NDL) shareholders if they were a little worried about the fact that Vedprakash Chiripal, a company insider, recently netted about ₹240m selling shares at an average price of ₹47.96. That diminished their holding by a very significant 71%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Nandan Denim

Nandan Denim Insider Transactions Over The Last Year

Notably, that recent sale by Vedprakash Chiripal is the biggest insider sale of Nandan Denim shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹47.65. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 Nandan Denim

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 24% of Nandan Denim shares, worth about ₹1.6b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Nandan Denim Insider Transactions Indicate?

An insider hasn't bought Nandan Denim stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Nandan Denim is growing earnings. 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 Nandan Denim has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Nandan Denim 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.

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