Trade Alert: Non-Executive Independent Director Of 20 Microns Ramkisan Devidayal Has Sold Stock

We note that the 20 Microns Limited (NSE:20MICRONS) Non-Executive Independent Director, Ramkisan Devidayal, recently sold ₹7.2m worth of stock for ₹206 per share. It wasn't a huge sale, but it did reduce their holding by 38%. This does not instill confidence.

See our latest analysis for 20 Microns

20 Microns Insider Transactions Over The Last Year

Notably, that recent sale by Ramkisan Devidayal is the biggest insider sale of 20 Microns shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹211. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 38% of Ramkisan Devidayal's holding.

20 Microns insiders didn't buy any shares 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!

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).

Does 20 Microns Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that 20 Microns insiders own 28% of the company, worth about ₹2.1b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About 20 Microns Insiders?

Insiders haven't bought 20 Microns stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since 20 Microns 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. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of 20 Microns.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com