Chief Executive Officer Marketing Of Pudumjee Paper Products Sold 40% Of Their Shares

Investors may wish to note that the Chief Executive Officer Marketing of Pudumjee Paper Products Limited, Gautam Jajodia, recently netted ₹4.8m from selling stock, receiving an average price of ₹95.16. It wasn't a huge sale, but it did reduce their holding by 40%. This does not instill confidence.

See our latest analysis for Pudumjee Paper Products

The Last 12 Months Of Insider Transactions At Pudumjee Paper Products

Notably, that recent sale by Gautam Jajodia is the biggest insider sale of Pudumjee Paper Products shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹103. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 40% of Gautam Jajodia's holding.

Gautam Jajodia sold a total of 58.00k shares over the year at an average price of ₹95.89. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Pudumjee Paper Products better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Pudumjee Paper Products Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Pudumjee Paper Products insiders own about ₹444m worth of shares (which is 4.6% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Pudumjee Paper Products Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Pudumjee Paper Products is profitable and growing, we're not too worried by this. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Pudumjee Paper Products (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Pudumjee Paper Products 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.

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