This Insider Has Just Sold Shares In Pennar Industries

Investors may wish to note that the Non Executive Non-Independent Director of Pennar Industries Limited, Potluri Rao, recently netted ₹4.6m from selling stock, receiving an average price of ₹185. It might not be a huge sale, but it did reduce their holding size 14%, hardly encouraging.

View our latest analysis for Pennar Industries

Pennar Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Vice Chairman & MD Aditya Rao bought ₹7.1m worth of shares at a price of ₹171 per share. We do like to see buying, but this purchase was made at well below the current price of ₹202. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Aditya Rao bought a total of 97.91k shares over the year at an average price of ₹144. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Pennar 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Pennar Industries insiders own 29% of the company, worth about ₹7.9b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Pennar Industries Insider Transactions Indicate?

An insider sold Pennar Industries shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Pennar Industries has 3 warning signs and it would be unwise to ignore these.

But note: Pennar 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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