On Door Concepts Drops To ₹235, Yet Insiders May Have Sold Too Early

On Door Concepts Limited's (NSE:ONDOOR) value has fallen 12% in the last week, but insiders who sold ₹12m worth of stock over the last year have had less success. The average selling price of ₹263 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for On Door Concepts

On Door Concepts Insider Transactions Over The Last Year

The Chairman & MD, Narendra Bapna, made the biggest insider sale in the last 12 months. That single transaction was for ₹12m worth of shares at a price of ₹263 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹235. So it is hard to draw any strong conclusion from it. Narendra Bapna was the only individual insider to sell over 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At On Door Concepts Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at On Door Concepts. In total, Chairman & MD Narendra Bapna dumped ₹12m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that On Door Concepts insiders own 5.0% of the company, worth about ₹67m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The On Door Concepts Insider Transactions Indicate?

An insider sold On Door Concepts shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with On Door Concepts (including 1 which can't be ignored).

But note: On Door Concepts 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.