Sabar Flex India Insider Sellers Miss The Bus As Stock Jumps 14%

Last week, Sabar Flex India Limited's (NSE:SABAR) stock jumped 14%, but insiders who sold ₹6.0m worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹14.70, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Sabar Flex India

Over the last year, we can see that the biggest insider sale was by the Chairman & MD, Hikmatbahadur Kunwar, for ₹6.0m worth of shares, at about ₹14.70 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹6.95. So it may not tell us anything about how insiders feel about the current share price. Hikmatbahadur Kunwar was the only individual insider to sell over the last year.

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!

Check out our latest analysis for Sabar Flex India

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Sabar Flex India

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. Sabar Flex India insiders own 57% of the company, currently worth about ₹76m 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 Does This Data Suggest About Sabar Flex India Insiders?

The fact that there have been no Sabar Flex India insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Sabar Flex India insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sabar Flex India. Every company has risks, and we've spotted 4 warning signs for Sabar Flex India you should know about.

But note: Sabar Flex India may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.