Stock Analysis

Have Lemon Tree Hotels Limited (NSE:LEMONTREE) Insiders Been Selling Their Stock?

NSEI:LEMONTREE
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Investors may wish to note that an insider of Lemon Tree Hotels Limited, Aradhana Lal, recently netted ₹1.5m from selling stock, receiving an average price of ₹38.90. However we note that the sale only shrunk their holding by 2.6%.

View our latest analysis for Lemon Tree Hotels

Lemon Tree Hotels Insider Transactions Over The Last Year

The Chairman & MD, Patanjali Keswani, made the biggest insider sale in the last 12 months. That single transaction was for ₹764m worth of shares at a price of ₹41.28 each. That means that an insider was selling shares at around the current price of ₹36.00. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in Lemon Tree Hotels than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NSEI:LEMONTREE Insider Trading Volume March 21st 2021

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Does Lemon Tree Hotels Boast High Insider Ownership?

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. From our data, it seems that Lemon Tree Hotels insiders own 1.3% of the company, worth about ₹376m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Lemon Tree Hotels Tell Us?

An insider sold Lemon Tree Hotels shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. You'd be interested to know, that we found 2 warning signs for Lemon Tree Hotels and we suggest you have a look.

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.

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This article by Simply Wall St is general in nature. 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.
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