Pennar Industries Limited (NSE:PENIND) insiders who sold earlier this year missed out on a 12% increase in the stock last week

By
Simply Wall St
Published
November 14, 2021
NSEI:PENIND
Source: Shutterstock

While it’s been a great week for Pennar Industries Limited (NSE:PENIND) shareholders after stock gained 12%, they should consider it with a grain of salt. The fact that insiders chose to dispose of ₹2.0m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Pennar Industries

Pennar Industries Insider Transactions Over The Last Year

While no particular insider transaction stood out, we can still look at the overall trading.

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!

insider-trading-volume
NSEI:PENIND Insider Trading Volume November 15th 2021

I will like Pennar Industries better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Pennar Industries 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. It appears that Pennar Industries insiders own 28% of the company, worth about ₹1.2b. 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 Do The Pennar Industries Insider Transactions Indicate?

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 Pennar Industries, 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 Pennar Industries. To that end, you should learn about the 4 warning signs we've spotted with Pennar Industries (including 2 which can't be ignored).

Of course Pennar Industries 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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