Insiders sold ₹49m worth of Aptech Limited (NSE:APTECHT) stock last year, could be a warning sign to watch out for

By
Simply Wall St
Published
September 27, 2021
NSEI:APTECHT
Source: Shutterstock

While it’s been a great week for Aptech Limited (NSE:APTECHT) shareholders after stock gained 12%, they should consider it with a grain of salt. Although prices were relatively low, insiders chose to sell ₹49m worth of stock in the past 12 months. This could be a sign of impending weakness.

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.

See our latest analysis for Aptech

The Last 12 Months Of Insider Transactions At Aptech

In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Director, Anil Pant, sold ₹31m worth of shares at a price of ₹248 per share. That means that even when the share price was below the current price of ₹315, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 39% of Anil Pant's stake.

Insiders in Aptech 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!

insider-trading-volume
NSEI:APTECHT Insider Trading Volume September 28th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Aptech

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. Insiders own 29% of Aptech shares, worth about ₹3.7b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Aptech Tell Us?

It doesn't really mean much that no insider has traded Aptech shares in the last quarter. While we feel good about high insider ownership of Aptech, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Aptech is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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