Have NCL Industries Insiders Been Selling Stock?

We wouldn't blame NCL Industries Limited (NSE:NCLIND) shareholders if they were a little worried about the fact that Gautam Kalidindi, the MD, Executive Director of Corporate Affairs & Executive Director recently netted about ₹72m selling shares at an average price of ₹184. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

View our latest analysis for NCL Industries

NCL Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Ashven Datla, sold ₹167m worth of shares at a price of ₹225 per share. 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 (₹203). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 459.97k shares for ₹85m. But insiders sold 1.85m shares worth ₹396m. All up, insiders sold more shares in NCL Industries than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does NCL Industries Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. NCL Industries insiders own about ₹3.8b worth of shares (which is 41% of the company). 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 NCL Industries Insiders?

Unfortunately, there has been more insider selling of NCL Industries stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, NCL 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. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of NCL Industries.

But note: NCL Industries 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.