Shareholders May Not Overlook Ruchi Infrastructure Insiders Selling ₹101m In Stock

Last week, Ruchi Infrastructure Limited's (NSE:RUCHINFRA) stock jumped 11%, but insiders who sold ₹101m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹14.00, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

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.

We've discovered 2 warning signs about Ruchi Infrastructure. View them for free.

The Last 12 Months Of Insider Transactions At Ruchi Infrastructure

The insider, Aditi Gowani, made the biggest insider sale in the last 12 months. That single transaction was for ₹17m worth of shares at a price of ₹14.82 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹7.88. So it may not tell us anything about how insiders feel about the current share price.

In the last year Ruchi Infrastructure insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Ruchi Infrastructure

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Insiders At Ruchi Infrastructure Have Sold Stock Recently

We have seen a bit of insider selling at Ruchi Infrastructure, over the last three months. insider Bhavna Goel divested only ₹4.2m worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.

Does Ruchi Infrastructure Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Ruchi Infrastructure insiders own 13% of the company, worth about ₹240m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Ruchi Infrastructure Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Ruchi Infrastructure you should be aware of.

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.