Stock Analysis

DMCC Speciality Chemicals Limited (NSE:DMCC) insiders made a handsome profit after selling stock presently valued at ₹277 apiece for ₹299

Source: Shutterstock

Last week, DMCC Speciality Chemicals Limited's (NSE:DMCC) stock jumped 11%, but insiders who sold ₹2.8m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹299, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for DMCC Speciality Chemicals

The Last 12 Months Of Insider Transactions At DMCC Speciality Chemicals

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:DMCC Insider Trading Volume March 15th 2023

I will like DMCC Speciality Chemicals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of DMCC Speciality Chemicals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. DMCC Speciality Chemicals insiders own about ₹3.4b worth of shares (which is 49% of the company). 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 DMCC Speciality Chemicals Tell Us?

The fact that there have been no DMCC Speciality Chemicals insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of DMCC Speciality Chemicals insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for DMCC Speciality Chemicals you should be aware of, and 2 of these make us uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Valuation is complex, but we're helping make it simple.

Find out whether DMCC Speciality Chemicals is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis