Astron Paper & Board Mill Falls To ₹15.68, But Insiders Sold At Lower Price

Astron Paper & Board Mill Limited's (NSE:ASTRON) stock price has dropped 13% in the previous week, but insiders who sold ₹18m in stock over the past year have had less luck. The average selling price of ₹22.75 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Astron Paper & Board Mill Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman & MD, Kiritbhai Patel, sold ₹11m worth of shares at a price of ₹23.49 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹15.68). So it may not shed much light on insider confidence at current levels.

Insiders in Astron Paper & Board Mill didn't buy any shares in the last year. 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!

View our latest analysis for Astron Paper & Board Mill

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Insider Ownership Of Astron Paper & Board Mill

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. It's great to see that Astron Paper & Board Mill insiders own 40% of the company, worth about ₹294m. 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 Astron Paper & Board Mill Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Astron Paper & Board Mill shares in the last quarter. While we feel good about high insider ownership of Astron Paper & Board Mill, we can't say the same about the selling of shares. 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 3 warning signs that you should run your eye over to get a better picture of Astron Paper & Board Mill.

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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.