Trade Alert: The Whole-Time Director Of Relaxo Footwears Limited (NSE:RELAXO), Deval Ganguly, Has Sold Some Shares Recently

We note that the Relaxo Footwears Limited (NSE:RELAXO) Whole-Time Director, Deval Ganguly, recently sold ₹3.4m worth of stock for ₹760 per share. That might not be a huge sum but it was 53% of their personal holding, so we find it a little discouraging.

View our latest analysis for Relaxo Footwears

Relaxo Footwears Insider Transactions Over The Last Year

In fact, the recent sale by Deval Ganguly was the biggest sale of Relaxo Footwears 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 (₹805). 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. 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. This single sale was 53% of Deval Ganguly's stake.

Insiders in Relaxo Footwears didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Relaxo Footwears insiders own about ₹139b worth of shares (which is 71% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Relaxo Footwears Insiders?

Insiders haven't bought Relaxo Footwears 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. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. Case in point: We've spotted 1 warning sign for Relaxo Footwears you should be aware of.

But note: Relaxo Footwears 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, but not derivative transactions.

If you decide to trade Relaxo Footwears, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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