Insiders Could Have Profited By Holding onto SKM Egg Products Export (India) Shares Despite 10% Drop

SKM Egg Products Export (India) Limited's (NSE:SKMEGGPROD) stock price has dropped 10% in the previous week, but insiders who sold ₹54m in stock over the past year have had less luck. Given that the average selling price of ₹462 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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 SKM Egg Products Export (India)

SKM Egg Products Export (India) Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Executive Director, S. K. M. ShivKumar, sold ₹48m worth of shares at a price of ₹476 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 ₹227. So it is hard to draw any strong conclusion from it. S. K. M. ShivKumar was the only individual insider to sell over the last year.

S. K. M. ShivKumar divested 117.03k shares over the last 12 months at an average price of ₹462. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 SKM Egg Products Export (India)

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that SKM Egg Products Export (India) insiders own 52% of the company, worth about ₹3.1b. 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 SKM Egg Products Export (India) Insiders?

The fact that there have been no SKM Egg Products Export (India) insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of SKM Egg Products Export (India) insider transactions don't fill us with confidence. 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 example - SKM Egg Products Export (India) has 2 warning signs we think 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.

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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.