This Insider Has Just Sold Shares In M. K. Proteins

We'd be surprised if M. K. Proteins Limited (NSE:MKPL) shareholders haven't noticed that the CFO & Whole Time Director, Vinod Kumar, recently sold ₹30m worth of stock at ₹10.39 per share. On the bright side, that sale was only 5.2% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for M. K. Proteins

The Last 12 Months Of Insider Transactions At M. K. Proteins

Notably, that recent sale by Vinod Kumar is the biggest insider sale of M. K. Proteins shares that we've seen in the last year. That means that even when the share price was below the current price of ₹11.85, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 5.2% of Vinod Kumar's holding.

In the last year M. K. Proteins insiders didn't buy any company stock. 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!

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

Does M. K. Proteins 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that M. K. Proteins insiders own 67% of the company, worth about ₹3.0b. 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 M. K. Proteins Tell Us?

Insiders sold M. K. Proteins shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since M. K. Proteins is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing 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. For instance, we've identified 2 warning signs for M. K. Proteins (1 makes us a bit uncomfortable) you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.