Have Insiders Sold Pidilite Industries Limited (NSE:PIDILITIND) Shares Recently?

By
Simply Wall St
Published
March 18, 2022
NSEI:PIDILITIND
Source: Shutterstock

We wouldn't blame Pidilite Industries Limited (NSE:PIDILITIND) shareholders if they were a little worried about the fact that Ajay Parekh, the Executive Vice Chairman recently netted about ₹91m selling shares at an average price of ₹2,330. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.0%.

Check out our latest analysis for Pidilite Industries

Pidilite Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Maithili Parekh, sold ₹805m worth of shares at a price of ₹2,269 per share. That means that even when the share price was below the current price of ₹2,510, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 11% of Maithili Parekh's stake.

In the last year Pidilite Industries insiders didn't buy any company stock. 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!

insider-trading-volume
NSEI:PIDILITIND Insider Trading Volume March 18th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Pidilite Industries

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. Pidilite Industries insiders own about ₹758b worth of shares (which is 59% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Pidilite Industries Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Pidilite Industries makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pidilite Industries. In terms of investment risks, we've identified 2 warning signs with Pidilite Industries and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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