Don't Ignore The Fact That This Insider Just Sold Some Shares In Barbeque Nation Hospitality Ltd. (NSE:BARBEQUE)

Simply Wall St
February 21, 2022
Source: Shutterstock

We note that the Barbeque Nation Hospitality Ltd. (NSE:BARBEQUE) Chief People Officer, Gulshan Chawla, recently sold ₹3.4m worth of stock for ₹1,420 per share. However we note that the sale only shrunk their holding by 3.7%.

See our latest analysis for Barbeque Nation Hospitality

The Last 12 Months Of Insider Transactions At Barbeque Nation Hospitality

Over the last year, we can see that the biggest insider sale was by the CEO & Whole Time Director, Rahul Agrawal, for ₹90m worth of shares, at about ₹1,503 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹1,343. So it may not shed much light on insider confidence at current levels.

In the last year Barbeque Nation Hospitality insiders didn't buy any company stock. 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!

NSEI:BARBEQUE Insider Trading Volume February 21st 2022

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Barbeque Nation Hospitality insiders own 7.8% of the company, worth about ₹4.1b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Barbeque Nation Hospitality Insiders?

Insiders haven't bought Barbeque Nation Hospitality 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. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Barbeque Nation Hospitality that deserve your attention before buying any shares.

Of course Barbeque Nation Hospitality 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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