Hatsun Agro Product Insiders Sold ₹731m Of Shares Suggesting Hesitancy

The fact that multiple Hatsun Agro Product Limited (NSE:HATSUN) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Hatsun Agro Product

Hatsun Agro Product Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, K S T Sundar, for ₹305m worth of shares, at about ₹1,219 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹1,005. So it may not tell us anything about how insiders feel about the current share price.

In total, Hatsun Agro Product insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Hatsun Agro Product

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. Hatsun Agro Product insiders own about ₹169b worth of shares (which is 76% 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 Do The Hatsun Agro Product Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Hatsun Agro Product 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 Hatsun Agro Product insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hatsun Agro Product. Case in point: We've spotted 2 warning signs for Hatsun Agro Product you should be aware of.

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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.