Cool Caps Industries Chairman & MD Rajeev Goenka Sells 33% Of Holding

Some Cool Caps Industries Limited (NSE:COOLCAPS) shareholders may be a little concerned to see that the Chairman & MD, Rajeev Goenka, recently sold a substantial ₹46m worth of stock at a price of ₹379 per share. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.

View our latest analysis for Cool Caps Industries

Cool Caps Industries Insider Transactions Over The Last Year

Notably, that recent sale by Rajeev Goenka is the biggest insider sale of Cool Caps Industries shares that we've seen in the last year. That means that even when the share price was below the current price of ₹405, 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. It is worth noting that this sale was only 33% of Rajeev Goenka's holding.

Over the last year we saw more insider selling of Cool Caps Industries shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Cool Caps Industries 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 Cool Caps Industries Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Cool Caps Industries insiders own 6.2% of the company, worth about ₹290m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Cool Caps Industries Tell Us?

The insider sales have outweighed the insider buying, at Cool Caps Industries, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Be aware that Cool Caps Industries is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

But note: Cool Caps Industries 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 of direct interests only, but not derivative transactions or indirect interests.

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