Multiple Insiders Sold South West Pinnacle Exploration Shares Presenting Weak Signs For Investors

South West Pinnacle Exploration Limited (NSE:SOUTHWEST) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for South West Pinnacle Exploration

The Last 12 Months Of Insider Transactions At South West Pinnacle Exploration

Over the last year, we can see that the biggest insider sale was by the Chairman & MD, Vikas Jain, for ₹28m worth of shares, at about ₹140 per share. So we know that an insider sold shares at around the present share price of ₹139. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

South West Pinnacle Exploration insiders didn't buy any shares 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of South West Pinnacle Exploration

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that South West Pinnacle Exploration insiders own 84% of the company, worth about ₹3.3b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At South West Pinnacle Exploration Tell Us?

It doesn't really mean much that no insider has traded South West Pinnacle Exploration shares in the last quarter. While we feel good about high insider ownership of South West Pinnacle Exploration, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing South West Pinnacle Exploration. Case in point: We've spotted 3 warning signs for South West Pinnacle Exploration you should be aware of, and 1 of them is potentially serious.

Of course South West Pinnacle Exploration may not be the best stock to buy. So you may wish to see this free collection of high quality 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.