Have Insiders Sold Dhanuka Agritech Limited (NSE:DHANUKA) Shares Recently?

We'd be surprised if Dhanuka Agritech Limited (NSE:DHANUKA) shareholders haven't noticed that the Director of Works & Executive Non-Independent Director, Arun Dhanuka, recently sold ₹10m worth of stock at ₹731 per share. On the bright side, that sale was only 0.3% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Dhanuka Agritech

The Last 12 Months Of Insider Transactions At Dhanuka Agritech

Notably, that recent sale by Arun Dhanuka is the biggest insider sale of Dhanuka Agritech shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹754). 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. We note that the biggest single sale was only 0.3%of Arun Dhanuka's holding.

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!

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).

Does Dhanuka Agritech Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dhanuka Agritech insiders own about ₹4.9b worth of shares. That equates to 14% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Dhanuka Agritech Insider Transactions Indicate?

An insider sold Dhanuka Agritech shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Dhanuka Agritech is profitable and growing, we're not too worried by this. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Dhanuka Agritech.

Of course Dhanuka Agritech 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.

When trading Dhanuka Agritech or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide 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 (at) simplywallst.com.