Insiders who sold ₹88m worth of Aakash Exploration Services Limited (NSE:AAKASH were amply compensated

Even though Aakash Exploration Services Limited (NSE:AAKASH) stock gained 22% last week, insiders who sold ₹88m worth of stock over the past year are probably better off. Selling at an average price of ₹22.65, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Aakash Exploration Services

Aakash Exploration Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD & Chairman, Vipul Haria, sold ₹8.6m worth of shares at a price of ₹22.23 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹7.60). So it may not tell us anything about how insiders feel about the current share price.

Aakash Exploration Services insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Aakash Exploration Services 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. 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 Aakash Exploration Services insiders own 66% of the company, worth about ₹506m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Aakash Exploration Services Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Aakash Exploration Services shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Aakash Exploration Services insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aakash Exploration Services. Be aware that Aakash Exploration Services is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Aakash Exploration Services may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.