Despite Hitting ₹15.79, Astron Paper & Board Mill Insiders Still Sold Too Soon

Despite the fact that Astron Paper & Board Mill Limited's (NSE:ASTRON) value has dropped 11% in the last week insiders who sold ₹18m worth of stock in the past 12 months have had less success. Given that the average selling price of ₹22.75 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Astron Paper & Board Mill

The Last 12 Months Of Insider Transactions At Astron Paper & Board Mill

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹15.79). 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. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Astron Paper & Board Mill 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 Astron Paper & Board Mill 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. We usually like to see fairly high levels of insider ownership. Astron Paper & Board Mill insiders own about ₹296m worth of shares (which is 40% of the company). 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 Does This Data Suggest About Astron Paper & Board Mill Insiders?

It doesn't really mean much that no insider has traded Astron Paper & Board Mill shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Astron Paper & Board Mill insider transactions don't fill us with confidence. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Astron Paper & Board Mill has 3 warning signs and it would be unwise to ignore them.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.