This Insider Has Just Sold Shares In Narmada Agrobase

We note that the Narmada Agrobase Limited (NSE:NARMADA) Whole Time Director, Suresh Chandra Gupta, recently sold ₹8.0m worth of stock for ₹19.97 per share. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

View our latest analysis for Narmada Agrobase

Narmada Agrobase Insider Transactions Over The Last Year

Notably, that recent sale by Suresh Chandra Gupta is the biggest insider sale of Narmada Agrobase shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹21.21. 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 only 15% of Suresh Chandra Gupta's holding.

In the last year Narmada Agrobase insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Narmada Agrobase Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Narmada Agrobase insiders own 69% of the company, currently worth about ₹198m 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.

So What Do The Narmada Agrobase Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Narmada Agrobase makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Narmada Agrobase. Be aware that Narmada Agrobase is showing 3 warning signs in our investment analysis, and 2 of those are potentially serious...

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.

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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.

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