Don't Ignore The Fact That This Insider Just Sold Some Shares In AVSL Industries Limited (NSE:AVSL)

We note that the AVSL Industries Limited (NSE:AVSL) Chairman & MD, Sanjay Bansal, recently sold ₹720k worth of stock for ₹30.00 per share. On the bright side, that's just a small sale and only reduced their holding by 1.2%.

See our latest analysis for AVSL Industries

AVSL Industries Insider Transactions Over The Last Year

Notably, that recent sale by Sanjay Bansal is the biggest insider sale of AVSL Industries shares that we've seen in the last year. That means that even when the share price was slightly below the current price of ₹30.00, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.2%of Sanjay Bansal's holding.

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 AVSL Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. AVSL Industries insiders own 51% of the company, currently worth about ₹82m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The AVSL Industries Insider Transactions Indicate?

An insider hasn't bought AVSL Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, AVSL Industries makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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've found that AVSL Industries has 5 warning signs (3 don't sit too well with us!) that deserve your attention before going any further with your analysis.

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, but not derivative transactions.

If you decide to trade AVSL Industries, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.