Trade Alert: Non-Executive Director Of ASL Industries Dilip Goyal Has Sold Stock

Some ASL Industries Limited (NSE:ASLIND) shareholders may be a little concerned to see that the Non-Executive Director, Dilip Goyal, recently sold a substantial ₹50m worth of stock at a price of ₹34.00 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

Check out our latest analysis for ASL Industries

ASL Industries Insider Transactions Over The Last Year

Notably, that recent sale by Dilip Goyal is the biggest insider sale of ASL Industries shares that we've seen in the last year. That means that even when the share price was below the current price of ₹40.10, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of Dilip Goyal's stake.

In the last year ASL 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like ASL Industries better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does ASL Industries Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 38% of ASL Industries shares, worth about ₹158m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The ASL Industries Insider Transactions Indicate?

Insiders haven't bought ASL Industries stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ASL Industries. For example, ASL Industries has 5 warning signs (and 3 which make us uncomfortable) we think you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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