Insider Sellers Might Regret Selling ShreeOswal Seeds and Chemicals Shares at a Lower Price Than Current Market Value

ShreeOswal Seeds and Chemicals Limited's (NSE:OSWALSEEDS) stock price has dropped 15% in the previous week, but insiders who sold ₹105m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹34.20 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for ShreeOswal Seeds and Chemicals

The Last 12 Months Of Insider Transactions At ShreeOswal Seeds and Chemicals

Over the last year, we can see that the biggest insider sale was by the CEO & Whole Time Director, Anil Nahata, for ₹31m worth of shares, at about ₹33.99 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 ₹14.44. So it may not tell us anything about how insiders feel about the current share price.

In the last year ShreeOswal Seeds and Chemicals insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. ShreeOswal Seeds and Chemicals insiders own 67% of the company, currently worth about ₹880m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About ShreeOswal Seeds and Chemicals Insiders?

The fact that there have been no ShreeOswal Seeds and Chemicals insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the ShreeOswal Seeds and Chemicals insiders selling. 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. For instance, we've identified 3 warning signs for ShreeOswal Seeds and Chemicals (1 shouldn't be ignored) you should be aware of.

But note: ShreeOswal Seeds and Chemicals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.