Don't Ignore The Fact That This Insider Just Sold Some Shares In Advanced Enzyme Technologies Limited (NSE:ADVENZYMES)

By
Simply Wall St
Published
February 21, 2021
NSEI:ADVENZYMES

We note that a Advanced Enzyme Technologies Limited (NSE:ADVENZYMES) insider, Madhusudan Soni, recently sold ₹5.7m worth of stock for ₹367 per share. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

Check out our latest analysis for Advanced Enzyme Technologies

The Last 12 Months Of Insider Transactions At Advanced Enzyme Technologies

Over the last year, we can see that the biggest insider purchase was by Director of Operations & Whole Time Director Mukund Kabra for ₹13m worth of shares, at about ₹99.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of ₹395. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 564.26k shares worth ₹64m. But they sold 96.93k shares for ₹33m. Overall, Advanced Enzyme Technologies insiders were net buyers during the last year. They paid about ₹114 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. 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:ADVENZYMES Insider Trading Volume February 22nd 2021

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

Insider Ownership of Advanced Enzyme Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Advanced Enzyme Technologies insiders own about ₹21b worth of shares (which is 48% of the company). 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 Advanced Enzyme Technologies Tell Us?

Insiders sold Advanced Enzyme Technologies shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Advanced Enzyme Technologies and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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