14% Of This Pennar Industries Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Pennar Industries Limited's (NSE:PENIND ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Pennar Industries Insider Transactions Over The Last Year

The Vice Chairman & MD Aditya Rao made the biggest insider purchase in the last 12 months. That single transaction was for ₹7.1m worth of shares at a price of ₹171 each. We do like to see buying, but this purchase was made at well below the current price of ₹192. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Potluri Rao sold a total of 184.00k shares over the year at an average price of ₹183. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Pennar Industries

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Insiders At Pennar Industries Have Sold Stock Recently

We've seen more insider selling than insider buying at Pennar Industries recently. We note Non Executive Non-Independent Director Potluri Rao cashed in ₹6.6m worth of shares. Meanwhile Vice Chairman & MD Aditya Rao bought ₹1.5m worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership Of Pennar Industries

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Pennar Industries insiders own 29% of the company, worth about ₹7.5b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Pennar Industries Tell Us?

Unfortunately, there has been more insider selling of Pennar Industries stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Pennar Industries is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 3 warning signs with Pennar Industries and understanding these should be part of your investment process.

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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.