Have Advanced Enzyme Technologies Limited (NSE:ADVENZYMES) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 28, 2020
NSEI:ADVENZYMES

Investors may wish to note that an insider of Advanced Enzyme Technologies Limited, Madhusudan Soni, recently netted ₹6.7m from selling stock, receiving an average price of ₹337. It might not be a huge sale, but it did reduce their holding size 40%, hardly encouraging.

See our latest analysis for Advanced Enzyme Technologies

Advanced Enzyme Technologies Insider Transactions Over The Last Year

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 ₹353. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 564.26k shares for ₹64m. But insiders sold 29.28k shares worth ₹9.3m. In the last twelve months there was more buying than selling by Advanced Enzyme Technologies insiders. They paid about ₹114 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. 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 November 29th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Advanced Enzyme Technologies

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. Advanced Enzyme Technologies insiders own 48% of the company, currently worth about ₹19b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Advanced Enzyme Technologies Insider Transactions Indicate?

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. For example - Advanced Enzyme Technologies has 2 warning signs we think you should be aware of.

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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