Don't Ignore The Insider Selling In Safari Industries (India)

We'd be surprised if Safari Industries (India) Limited (NSE:SAFARI) shareholders haven't noticed that the Chief Financial Officer, Vineet Poddar, recently sold ₹18m worth of stock at ₹2,698 per share. However, the silver lining is that the sale only reduced their total holding by 8.9%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Safari Industries (India)

Safari Industries (India) Insider Transactions Over The Last Year

Notably, that recent sale by Chief Financial Officer Vineet Poddar was not the only time they sold Safari Industries (India) shares this year. Earlier in the year, they fetched ₹2,090 per share in a -₹25m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹2,716. 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. 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. This single sale was just 16% of Vineet Poddar's stake.

Insiders in Safari Industries (India) didn't buy any shares in the last year. 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!

I will like Safari Industries (India) better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Safari Industries (India) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Safari Industries (India) insiders own 43% of the company, currently worth about ₹57b 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 Safari Industries (India) Insiders?

Insiders sold stock recently, but they haven't been buying. 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. 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. For example, Safari Industries (India) has 3 warning signs (and 1 which is significant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.