This Insider Has Just Sold Shares In ADF Foods Limited (NSE:ADFFOODS)

We'd be surprised if ADF Foods Limited (NSE:ADFFOODS) shareholders haven't noticed that the Executive Chairman, Bimal Thakkar, recently sold ₹14m worth of stock at ₹715 per share. However, the silver lining is that the sale only reduced their total holding by 0.3%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for ADF Foods

The Last 12 Months Of Insider Transactions At ADF Foods

In fact, the recent sale by Bimal Thakkar was the biggest sale of ADF Foods shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹706. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of ADF Foods

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. Insiders own 39% of ADF Foods shares, worth about ₹6.1b. 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 ADF Foods Insider Transactions Indicate?

An insider hasn't bought ADF Foods stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ADF Foods. You'd be interested to know, that we found 3 warning signs for ADF Foods 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. 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.