Insider Sellers Might Regret Selling BCL Industries Shares at a Lower Price Than Current Market Value

BCL Industries Limited's (NSE:BCLIND) stock price has dropped 13% in the previous week, but insiders who sold ₹313m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹61.98 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for BCL Industries

The Last 12 Months Of Insider Transactions At BCL Industries

The insider, Sunita Mittal, made the biggest insider sale in the last 12 months. That single transaction was for ₹163m worth of shares at a price of ₹65.00 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹41.16). So it may not tell us anything about how insiders feel about the current share price.

Insiders in BCL Industries 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!

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Does BCL Industries 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. BCL Industries insiders own 59% of the company, currently worth about ₹7.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At BCL Industries Tell Us?

It doesn't really mean much that no insider has traded BCL Industries shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the BCL Industries insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BCL Industries. Every company has risks, and we've spotted 2 warning signs for BCL Industries you should know about.

Of course BCL Industries 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 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.