Have Cool Caps Industries Insiders Been Selling Stock?

Investors may wish to note that the Chairman & MD of Cool Caps Industries Limited, Rajeev Goenka, recently netted ₹7.5m from selling stock, receiving an average price of ₹751. It might not be a huge sale, but it did reduce their holding size 20%, hardly encouraging.

Check out our latest analysis for Cool Caps Industries

The Last 12 Months Of Insider Transactions At Cool Caps Industries

In fact, the recent sale by Chairman & MD Rajeev Goenka was not their only sale of Cool Caps Industries shares this year. They previously made an even bigger sale of -₹46m worth of shares at a price of ₹379 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹798. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 33% of Rajeev Goenka's stake.

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. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership Of Cool Caps Industries

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own ₹408m worth of Cool Caps Industries stock, about 4.4% of the company. I generally like to see higher levels of ownership.

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

Insiders sold Cool Caps Industries shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Cool Caps Industries has 4 warning signs (and 3 which can't be ignored) we think you should know about.

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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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.