CEO & Executive Director Of Rama Steel Tubes Sold 59% Of Their Shares

Some Rama Steel Tubes Limited (NSE:RAMASTEEL) shareholders may be a little concerned to see that the CEO & Executive Director, Richi Bansal, recently sold a substantial ₹702m worth of stock at a price of ₹10.03 per share. That diminished their holding by a very significant 59%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Rama Steel Tubes

Rama Steel Tubes Insider Transactions Over The Last Year

In fact, the recent sale by Richi Bansal was the biggest sale of Rama Steel Tubes shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹10.49, an insider wanted to cash in some shares. 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. It is worth noting that this sale was 59% of Richi Bansal's holding.

In the last year Rama Steel Tubes 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Rama Steel Tubes better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Rama Steel Tubes 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Rama Steel Tubes insiders own 59% of the company, currently worth about ₹9.6b based on the recent share price. 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 Do The Rama Steel Tubes Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rama Steel Tubes. Every company has risks, and we've spotted 2 warning signs for Rama Steel Tubes you should know about.

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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