Have Godrej Consumer Products Limited (NSE:GODREJCP) Insiders Been Selling Their Stock?

We note that a Godrej Consumer Products Limited (NSE:GODREJCP) insider, Manoj Kothari, recently sold ₹1.2m worth of stock for ₹728 per share. It wasn't a huge sale, but it did reduce their holding by 49%. This does not instill confidence.

View our latest analysis for Godrej Consumer Products

Godrej Consumer Products Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Head of M&A and Business Development, Omar Momin, sold ₹5.2m worth of shares at a price of ₹645 per share. That means that an insider was selling shares at slightly below the current price (₹721). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 25% of Omar Momin's holding.

In total, Godrej Consumer Products insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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 winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Godrej Consumer Products Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Godrej Consumer Products insiders own about ₹14b worth of shares (which is 1.9% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Godrej Consumer Products Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Godrej Consumer Products.

But note: Godrej Consumer Products 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, but not derivative transactions.

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