MD, CEO & Director Of Chalet Hotels Sold 53% Of Their Shares

Anyone interested in Chalet Hotels Limited (NSE:CHALET) should probably be aware that the MD, CEO & Director, Sanjay Sethi, recently divested ₹22m worth of shares in the company, at an average price of ₹841 each. In particular, we note that the sale equated to a 53% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for Chalet Hotels

The Last 12 Months Of Insider Transactions At Chalet Hotels

Notably, that recent sale by Sanjay Sethi is the biggest insider sale of Chalet Hotels shares that we've seen in the last year. That means that an insider was selling shares at below the current price (₹862). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 53% of Sanjay Sethi's holding.

Insiders in Chalet Hotels didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Chalet Hotels insiders own 13% of the company, worth about ₹25b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Chalet Hotels Tell Us?

Insiders haven't bought Chalet Hotels stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 4 warning signs for Chalet Hotels you should be aware of.

Of course Chalet Hotels 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 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.