Premier Explosives Limited (NSE:PREMEXPLN) drops to ₹220, but insiders may have sold at a lower price of ₹150 too quickly

By
Simply Wall St
Published
August 23, 2021
NSEI:PREMEXPLN
Source: Shutterstock

Even though Premier Explosives Limited (NSE:PREMEXPLN) has fallen by 11% over the past week , insiders who sold ₹2.2m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹150 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Premier Explosives

Premier Explosives Insider Transactions Over The Last Year

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

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:PREMEXPLN Insider Trading Volume August 24th 2021

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

Insider Ownership of Premier Explosives

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Premier Explosives insiders own about ₹1.3b worth of shares (which is 54% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Premier Explosives Insiders?

The fact that there have been no Premier Explosives insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Premier Explosives insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Premier Explosives (1 is a bit unpleasant!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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