Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Sapphire Foods India Limited (NSE:SAPPHIRE)

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Investors may wish to note that the Chief Executive Officer of KFC of Sapphire Foods India Limited, Deepak Taluja, recently netted ₹1.6m from selling stock, receiving an average price of ₹1,245. However we note that the sale only shrunk their holding by 1.3%.

See our latest analysis for Sapphire Foods India

Sapphire Foods India Insider Transactions Over The Last Year

The Group CEO & Whole Time Director, Sanjay Purohit, made the biggest insider sale in the last 12 months. That single transaction was for ₹244m worth of shares at a price of ₹1,220 each. So what is clear is that an insider saw fit to sell at around the current price of ₹1,184. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Sapphire Foods India insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:SAPPHIRE Insider Trading Volume March 16th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Sapphire Foods India Boast High 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. Insiders own 1.7% of Sapphire Foods India shares, worth about ₹1.3b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Sapphire Foods India Insider Transactions Indicate?

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. On the plus side, Sapphire Foods India makes money, and is growing profits. 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. While conducting our analysis, we found that Sapphire Foods India has 1 warning sign and it would be unwise to ignore this.

Of course Sapphire Foods India 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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