Don't Ignore The Insider Selling In Ahimsa Industries

We wouldn't blame Ahimsa Industries Limited (NSE:AHIMSA) shareholders if they were a little worried about the fact that Sneha Gandhi, a company insider, recently netted about ₹47m selling shares at an average price of ₹59.36. That diminished their holding by a very significant 50%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Ahimsa Industries

Ahimsa Industries Insider Transactions Over The Last Year

Notably, that recent sale by Sneha Gandhi is the biggest insider sale of Ahimsa Industries shares that we've seen in the last year. That means that an insider was selling shares at below the current price (₹59.60). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 50% of Sneha Gandhi's holding.

In the last year Ahimsa Industries insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Ahimsa Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ahimsa Industries insiders own 69% of the company, currently worth about ₹227m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Ahimsa Industries Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Ahimsa Industries has 5 warning signs (and 3 which shouldn't be ignored) we think you should know about.

Of course Ahimsa Industries 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 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.