Insiders Could Have Profited By Holding onto India Pesticides Shares Despite 12% Drop

India Pesticides Limited's (NSE:IPL) value has fallen 12% in the last week, but insiders who sold ₹68m worth of stock over the last year have had less success. The average selling price of ₹368 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for India Pesticides

India Pesticides Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Madhu Bagaria, sold ₹68m worth of shares at a price of ₹368 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹178). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Madhu Bagaria.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. It's great to see that India Pesticides insiders own 60% of the company, worth about ₹12b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About India Pesticides Insiders?

It doesn't really mean much that no insider has traded India Pesticides shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the India Pesticides insiders selling. 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. Be aware that India Pesticides is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.