This Insider Has Just Sold Shares In PTC Industries

Anyone interested in PTC Industries Limited (NSE:PTCIL) should probably be aware that the Chairman & MD, Sachin Agarwal, recently divested ₹33m worth of shares in the company, at an average price of ₹14,578 each. On the bright side, that sale was only 4.2% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for PTC Industries

PTC Industries Insider Transactions Over The Last Year

The Director of Quality & Technical and Executive Director, Alok Agarwal, made the biggest insider sale in the last 12 months. That single transaction was for ₹79m worth of shares at a price of ₹13,143 each. That means that an insider was selling shares at slightly below the current price (₹14,863). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 1.1% of Alok Agarwal's holding.

In the last year PTC 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does PTC Industries Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. PTC Industries insiders own about ₹112b worth of shares (which is 52% 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 PTC Industries Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, PTC Industries makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for PTC Industries (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.