Have Insiders Been Selling Mold-Tek Packaging Limited (NSE:MOLDTKPAC) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Mold-Tek Packaging Limited (NSE:MOLDTKPAC).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Mold-Tek Packaging

Mold-Tek Packaging Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Nandiwada Padmavathi, sold ₹26m worth of shares at a price of ₹255 per share. That means that an insider was selling shares at slightly below the current price (₹312). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 23% of Nandiwada Padmavathi's stake.

Over the last year we saw more insider selling of Mold-Tek Packaging shares, than buying. The average sell price was around ₹254. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Mold-Tek Packaging Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 35% of Mold-Tek Packaging shares, worth about ₹3.1b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Mold-Tek Packaging Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Mold-Tek Packaging, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mold-Tek Packaging. Case in point: We've spotted 3 warning signs for Mold-Tek Packaging you should be aware of.

Of course Mold-Tek Packaging 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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