Stock Analysis

Have Insiders Sold 20 Microns Limited (NSE:20MICRONS) Shares Recently?

NSEI:20MICRONS
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We note that a 20 Microns Limited (NSE:20MICRONS) insider, Sumita Devidayal, recently sold ₹1.9m worth of stock for ₹36.29 per share. That might not be a huge sum but it was 74% of their personal holding, so we find it a little discouraging.

Check out our latest analysis for 20 Microns

20 Microns Insider Transactions Over The Last Year

Notably, that recent sale by Sumita Devidayal is the biggest insider sale of 20 Microns shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹36.40. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 140.73k shares worth ₹3.4m. On the other hand they divested 51.75k shares, for ₹1.9m. In total, 20 Microns insiders bought more than they sold 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:20MICRONS Insider Trading Volume December 23rd 2020

20 Microns is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does 20 Microns Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 33% of 20 Microns shares, worth about ₹422m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The 20 Microns Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So we're not too bothered by recent selling. 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. Case in point: We've spotted 5 warning signs for 20 Microns you should be aware of, and 1 of them shouldn't be ignored.

Of course 20 Microns may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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This article by Simply Wall St is general in nature. 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.
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