This Insider Has Just Sold Shares In Pennar Industries Limited (NSE:PENIND)

Investors may wish to note that the Joint MD & Director of Pennar Industries Limited, Potluri Rao, recently netted ₹2.0m from selling stock, receiving an average price of ₹20.00. It might not be a huge sale, but it did reduce their holding size 19%, hardly encouraging.

See our latest analysis for Pennar Industries

The Last 12 Months Of Insider Transactions At Pennar Industries

Notably, that recent sale by Potluri Rao is the biggest insider sale of Pennar Industries shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹18.65. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Pennar Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Pennar Industries insiders own about ₹699m worth of shares. That equates to 26% of the company. 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?

An insider hasn't bought Pennar Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. For instance, we've identified 5 warning signs for Pennar Industries (2 don't sit too well with us) you should be aware of.

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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, but not derivative transactions.

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