Whole Time Director Of Geekay Wires Sold 28% Of Their Shares

Anyone interested in Geekay Wires Limited (NSE:GEEKAYWIRE) should probably be aware that the Whole Time Director, Ashish Kandoi, recently divested ₹42m worth of shares in the company, at an average price of ₹129 each. The eyebrow raising move amounted to a reduction of 28% in their holding.

Check out our latest analysis for Geekay Wires

The Last 12 Months Of Insider Transactions At Geekay Wires

Notably, that recent sale by Ashish Kandoi is the biggest insider sale of Geekay Wires shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹120. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Geekay Wires insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Geekay Wires

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 32% of Geekay Wires shares, worth about ₹2.0b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Geekay Wires Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Geekay Wires 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. While it's good to be aware of 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. When we did our research, we found 5 warning signs for Geekay Wires (2 are a bit concerning!) that we believe deserve your full attention.

But note: Geekay Wires 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.