Insiders Could Have Profited By Holding onto BCL Industries Shares Despite 11% Drop

BCL Industries Limited's (NSE:BCLIND) value has fallen 11% in the last week, but insiders who sold ₹166m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of ₹65.04 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for BCL Industries

The Last 12 Months Of Insider Transactions At BCL Industries

Notably, that recent sale by Sunita Mittal is the biggest insider sale of BCL Industries shares that we've seen in the last year. 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 (₹57.93). So it is hard to draw any strong conclusion from it.

Insiders in BCL Industries didn't buy any shares in the last year. 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!

I will like BCL Industries better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At BCL Industries Have Sold Stock Recently

The last quarter saw substantial insider selling of BCL Industries shares. Specifically, insiders ditched ₹166m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does BCL Industries Boast High Insider Ownership?

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. BCL Industries insiders own about ₹10b worth of shares (which is 61% of the company). 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 Does This Data Suggest About BCL Industries Insiders?

Insiders sold BCL Industries shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, BCL Industries makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for BCL Industries you should be aware of, and 1 of these is significant.

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.