Don't Ignore The Insider Selling In Arrow Greentech

Investors may wish to note that the Independent Director of Arrow Greentech Limited, Haresh Mehta, recently netted ₹5.3m from selling stock, receiving an average price of ₹521. It might not be a huge sale, but it did reduce their holding size 12%, hardly encouraging.

The Last 12 Months Of Insider Transactions At Arrow Greentech

In the last twelve months, the biggest single sale by an insider was when the Chairman, Shilpan Patel, sold ₹272m worth of shares at a price of ₹932 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹525. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 8.41k shares worth ₹3.3m. But insiders sold 316.31k shares worth ₹290m. Over the last year we saw more insider selling of Arrow Greentech shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Arrow Greentech

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Arrow Greentech insiders own about ₹5.3b worth of shares (which is 67% 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.

So What Does This Data Suggest About Arrow Greentech Insiders?

An insider hasn't bought Arrow Greentech stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Arrow Greentech is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Arrow Greentech that deserve your attention before buying any shares.

Of course Arrow Greentech 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.