Have Insiders Sold Dr. Lal PathLabs Shares Recently?

We'd be surprised if Dr. Lal PathLabs Limited (NSE:LALPATHLAB) shareholders haven't noticed that the MD & Director, Om Manchanda, recently sold ₹43m worth of stock at ₹2,379 per share. On the bright side, that sale was only 2.2% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Dr. Lal PathLabs

The Last 12 Months Of Insider Transactions At Dr. Lal PathLabs

The Executive Chairman, Arvind Lal, made the biggest insider sale in the last 12 months. That single transaction was for ₹681m worth of shares at a price of ₹3,406 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹2,493. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Dr. Lal PathLabs than they bought, over the last year. 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!

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

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Dr. Lal PathLabs insiders own 55% of the company, worth about ₹115b. 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 Dr. Lal PathLabs Tell Us?

Insiders sold Dr. Lal PathLabs shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Dr. Lal PathLabs is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Dr. Lal PathLabs and understanding these should be part of your investment process.

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.