This Insider Has Just Sold Shares In Piramal Enterprises Limited (NSE:PEL)

Anyone interested in Piramal Enterprises Limited (NSE:PEL) should probably be aware that a company insider, Vikram Bector, recently divested ₹9.5m worth of shares in the company, at an average price of ₹1,900 each. The eyebrow raising move amounted to a reduction of 44% in their holding.

See our latest analysis for Piramal Enterprises

The Last 12 Months Of Insider Transactions At Piramal Enterprises

In fact, the recent sale by Vikram Bector was the biggest sale of Piramal Enterprises shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹1,906. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 44% of Vikram Bector's stake.

Insiders in Piramal Enterprises didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Piramal Enterprises better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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 Piramal Enterprises insiders own 0.7% of the company, worth about ₹2.9b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Piramal Enterprises Tell Us?

Insiders sold Piramal Enterprises shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Piramal Enterprises. Be aware that Piramal Enterprises is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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