Don't Ignore The Fact That This Insider Just Sold Some Shares In Best Agrolife Limited (NSE:BESTAGRO)

By
Simply Wall St
Published
April 10, 2022
NSEI:BESTAGRO
Source: Shutterstock

Investors may wish to note that an insider of Best Agrolife Limited, Geeta Garg, recently netted ₹2.8m from selling stock, receiving an average price of ₹1,122. While that isn't a lot of money, it was a substantial 95% of their holding, so certainly isn't a good sign.

See our latest analysis for Best Agrolife

The Last 12 Months Of Insider Transactions At Best Agrolife

Notably, that recent sale by Geeta Garg is the biggest insider sale of Best Agrolife shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹1,025. While insider selling is a negative, to us, it is more negative if the shares are sold 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.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:BESTAGRO Insider Trading Volume April 10th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Best Agrolife

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Best Agrolife insiders own 72% of the company, worth about ₹17b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Best Agrolife Tell Us?

An insider sold Best Agrolife shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Best Agrolife is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Best Agrolife. For example - Best Agrolife has 1 warning sign we think you should be aware of.

Of course Best Agrolife may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.