This Insider Has Just Sold Shares In Galaxy Surfactants Limited (NSE:GALAXYSURF)

We note that the Galaxy Surfactants Limited (NSE:GALAXYSURF) MD & Executive Director, Unnathan Shekhar, recently sold ₹1.8m worth of stock for ₹1,910 per share. However we note that the sale only shrunk their holding by 2.0%.

See our latest analysis for Galaxy Surfactants

Galaxy Surfactants Insider Transactions Over The Last Year

Notably, that recent sale by Unnathan Shekhar is the biggest insider sale of Galaxy Surfactants shares that we've seen in the last year. That means that even when the share price was below the current price of ₹1,991, 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. This single sale was just 2.0% of Unnathan Shekhar's stake.

In the last twelve months insiders purchased 1.18k shares for ₹1.7m. On the other hand they divested 4.23k shares, for ₹6.9m. Unnathan Shekhar divested 4.23k shares over the last 12 months at an average price of ₹1,628. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Galaxy Surfactants 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

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. We usually like to see fairly high levels of insider ownership. Galaxy Surfactants insiders own about ₹19b worth of shares (which is 27% 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.

So What Does This Data Suggest About Galaxy Surfactants Insiders?

Unfortunately, there has been more insider selling of Galaxy Surfactants stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Galaxy Surfactants is growing earnings. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Galaxy Surfactants. For example - Galaxy Surfactants has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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