Have Insiders Sold TCNS Clothing Co. Limited (NSE:TCNSBRANDS) Shares Recently?

By
Simply Wall St
Published
December 22, 2020

We note that a TCNS Clothing Co. Limited (NSE:TCNSBRANDS) insider, Dharmender Kumar, recently sold ₹6.8m worth of stock for ₹522 per share. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.

View our latest analysis for TCNS Clothing

TCNS Clothing Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Arindam Chakravorty, sold ₹8.4m worth of shares at a price of ₹359 per share. That means that an insider was selling shares at slightly below the current price (₹452). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 Arindam Chakravorty's stake.

In the last year TCNS Clothing insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:TCNSBRANDS Insider Trading Volume December 23rd 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does TCNS Clothing Boast High 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. It's great to see that TCNS Clothing insiders own 44% of the company, worth about ₹12b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At TCNS Clothing Tell Us?

Insiders sold TCNS Clothing shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for TCNS Clothing and we suggest you have a look.

Of course TCNS Clothing may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.
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