We'd be surprised if TCNS Clothing Co. Limited (NSE:TCNSBRANDS) shareholders haven't noticed that an insider, Lalit Raghuvanshi, recently sold ₹13m worth of stock at ₹486 per share. The eyebrow raising move amounted to a reduction of 13% in their holding.
The Last 12 Months Of Insider Transactions At TCNS Clothing
In the last twelve months, the biggest single sale by an insider was when the insider, Anil Chauhan, sold ₹19m worth of shares at a price of ₹511 per share. That means that an insider was selling shares at around the current price of ₹493. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in TCNS Clothing didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. TCNS Clothing insiders own about ₹13b worth of shares (which is 43% of the company). 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 TCNS Clothing Insiders?
Insiders haven't bought TCNS Clothing stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TCNS Clothing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of TCNS Clothing.
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, but not derivative transactions.
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