Have Insiders Sold Arrow Greentech Shares Recently?

We wouldn't blame Arrow Greentech Limited (NSE:ARROWGREEN) shareholders if they were a little worried about the fact that Shilpan Patel, the Chairman recently netted about ₹272m selling shares at an average price of ₹932. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.0%.

See our latest analysis for Arrow Greentech

The Last 12 Months Of Insider Transactions At Arrow Greentech

In fact, the recent sale by Shilpan Patel was the biggest sale of Arrow Greentech shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹853. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid ₹6.8m for 17.72k shares. On the other hand they divested 308.23k shares, for ₹286m. All up, insiders sold more shares in Arrow Greentech than they bought, over the last year. 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!

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Insider Ownership Of Arrow Greentech

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Arrow Greentech insiders own about ₹9.1b worth of shares (which is 71% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Arrow Greentech Tell Us?

Insiders haven't bought Arrow Greentech stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Arrow Greentech is growing earnings. 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 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Arrow Greentech.

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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.