95% Of This Mrs. Bectors Food Specialities Insider's Holdings Were Sold

Viewing insider transactions for Mrs. Bectors Food Specialities Limited's (NSE:BECTORFOOD ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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 Mrs. Bectors Food Specialities

The Last 12 Months Of Insider Transactions At Mrs. Bectors Food Specialities

In the last twelve months, the biggest single sale by an insider was when the insider, Rajeev Dubey, sold ₹16m worth of shares at a price of ₹1,600 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹1,855. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 95% of Rajeev Dubey's holding. Rajeev Dubey was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 8.00k shares for ₹9.8m. But insiders sold 11.00k shares worth ₹16m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Mrs. Bectors Food Specialities Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Mrs. Bectors Food Specialities. In that time, insider Rajeev Dubey dumped ₹16m worth of shares. On the other hand we note insider Rajeev Dubey bought ₹4.8m worth of shares. Generally this level of net selling might be considered a bit bearish.

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. We usually like to see fairly high levels of insider ownership. It's great to see that Mrs. Bectors Food Specialities insiders own 35% of the company, worth about ₹40b. 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 Mrs. Bectors Food Specialities Insider Transactions Indicate?

The stark truth for Mrs. Bectors Food Specialities is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Mrs. Bectors Food Specialities is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Mrs. Bectors Food Specialities (including 1 which shouldn't be ignored).

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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.