Indo Borax & Chemicals Insider Stock Sellers Must Be Relieved As Market Cap Falls To ₹4.8b

By selling ₹28m worth of Indo Borax & Chemicals Limited (NSE:INDOBORAX) stock at an average sell price of ₹127 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by ₹598m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Indo Borax & Chemicals

The Last 12 Months Of Insider Transactions At Indo Borax & Chemicals

The insider, Saumya Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹25m worth of shares at a price of ₹128 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹149. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 3.7% of Saumya Jain's holding. Saumya Jain was the only individual insider to sell over the last year.

Saumya Jain divested 222.33k shares over the last 12 months at an average price of ₹127. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Indo Borax & Chemicals insiders own about ₹2.5b worth of shares (which is 53% 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 Indo Borax & Chemicals Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Indo Borax & Chemicals insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Indo Borax & Chemicals. For example - Indo Borax & Chemicals has 1 warning sign we think you should be aware of.

But note: Indo Borax & Chemicals 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.