Trade Alert: Chief Financial Officer Of Sapphire Foods India Vijay Jain Has Sold Stock

We wouldn't blame Sapphire Foods India Limited (NSE:SAPPHIRE) shareholders if they were a little worried about the fact that Vijay Jain, the Chief Financial Officer recently netted about ₹68m selling shares at an average price of ₹1,504. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Sapphire Foods India

The Last 12 Months Of Insider Transactions At Sapphire Foods India

Over the last year, we can see that the biggest insider sale was by the Chief Executive Officer of KFC, Deepak Taluja, for ₹69m worth of shares, at about ₹1,326 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹1,501. 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. We note that the biggest single sale was 54% of Deepak Taluja's holding.

Insiders in Sapphire Foods India didn't buy any shares in the last year. 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!

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Insider Ownership Of Sapphire Foods India

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sapphire Foods India insiders own about ₹1.2b worth of shares. That equates to 1.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sapphire Foods India Insider Transactions Indicate?

Insiders haven't bought Sapphire Foods India stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Sapphire Foods India is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Sapphire Foods India (including 1 which is concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.