Have Indo Amines Limited (NSE:INDOAMIN) Insiders Been Selling Their Stock?

September 25, 2022
  •  Updated
November 13, 2022
Source: Shutterstock

Anyone interested in Indo Amines Limited (NSE:INDOAMIN) should probably be aware that the Executive Director, Nandu Gupta, recently divested ₹20m worth of shares in the company, at an average price of ₹141 each. On the bright side, that sale was only 9.4% of their holding, so we doubt it's very meaningful, on its own.

Before we look at these insider transactions though, you might like to know that our analysis indicates that INDOAMIN is potentially overvalued!

The Last 12 Months Of Insider Transactions At Indo Amines

Notably, that recent sale by Nandu Gupta is the biggest insider sale of Indo Amines shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹126). So it may not shed much light on insider confidence at current levels.

Nandu Gupta ditched 302.19k shares over the year. The average price per share was ₹140. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:INDOAMIN Insider Trading Volume September 25th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Indo Amines insiders own about ₹2.5b worth of shares. That equates to 29% 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 Does This Data Suggest About Indo Amines Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 5 warning signs for Indo Amines (of which 2 don't sit too well with us!) you should know about.

Of course Indo Amines 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.

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Find out whether Indo Amines 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.

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