Trade Alert: Non-Executive Chairman Of Clean Science and Technology Pradeep Kumar Rathi Has Sold Stock \

We wouldn't blame Clean Science and Technology Limited (NSE:CLEAN) shareholders if they were a little worried about the fact that Pradeep Kumar Rathi, the Non-Executive Chairman recently netted about ₹317m selling shares at an average price of ₹1,406. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for Clean Science and Technology

The Last 12 Months Of Insider Transactions At Clean Science and Technology

Notably, that recent sale by Pradeep Kumar Rathi is the biggest insider sale of Clean Science and Technology shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹1,419. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Pradeep Kumar Rathi's stake.

In the last year Clean Science and Technology insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Clean Science and Technology insiders own about ₹119b worth of shares (which is 79% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Clean Science and Technology Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Clean Science and Technology makes money, and is growing profits. 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. 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. For example, Clean Science and Technology has 3 warning signs (and 1 which is potentially serious) we think you should know about.

But note: Clean Science and Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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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.