Insiders At Sarveshwar Foods Sold ₹324m Of Stock Potentially Indicating Weakness

Sarveshwar Foods Limited's (NSE:SARVESHWAR) stock rose 11% last week, but insiders who sold ₹324m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of ₹9.75, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Sarveshwar Foods

The Non-Executive Chairman, Rohit Gupta, made the biggest insider sale in the last 12 months. That single transaction was for ₹160m worth of shares at a price of ₹8.86 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹6.94. So it may not tell us anything about how insiders feel about the current share price. Rohit Gupta was the only individual insider to sell over the last year.

Rohit Gupta divested 33.20m shares over the last 12 months at an average price of ₹9.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Sarveshwar Foods

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).

Insider Ownership Of Sarveshwar Foods

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sarveshwar Foods insiders own 60% of the company, currently worth about ₹4.1b 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 Do The Sarveshwar Foods Insider Transactions Indicate?

The fact that there have been no Sarveshwar Foods insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Sarveshwar Foods, we can't say the same about the selling of shares. 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. Every company has risks, and we've spotted 2 warning signs for Sarveshwar Foods (of which 1 is a bit concerning!) you should know about.

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.