Have Greenply Industries Insiders Been Selling Stock?

We wouldn't blame Greenply Industries Limited (NSE:GREENPLY) shareholders if they were a little worried about the fact that Manoj Tulsian, the Joint MD recently netted about ₹76m selling shares at an average price of ₹315. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

View our latest analysis for Greenply Industries

Greenply Industries Insider Transactions Over The Last Year

Notably, that recent sale by Manoj Tulsian is the biggest insider sale of Greenply Industries shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹315. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid ₹18m for 57.95k shares. On the other hand they divested 242.00k shares, for ₹76m. 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 Greenply 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 Greenply Industries

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Greenply Industries insiders own 0.4% of the company, worth about ₹170m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Greenply Industries Tell Us?

The stark truth for Greenply Industries is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Greenply Industries makes money, and is growing profits. 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 Greenply Industries. Case in point: We've spotted 2 warning signs for Greenply Industries you should be aware of.

Of course Greenply Industries 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 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.