Multiple Insiders Sold Sree Rayalaseema Hi-Strength Hypo Shares Presenting Weak Signs For Investors

Quite a few Sree Rayalaseema Hi-Strength Hypo Limited (NSE:SRHHYPOLTD) insiders sold their shares over the past year, which may be a cause for concern. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Sree Rayalaseema Hi-Strength Hypo

Sree Rayalaseema Hi-Strength Hypo Insider Transactions Over The Last Year

The insider, Tumbalam Shilpa Bharath, made the biggest insider sale in the last 12 months. That single transaction was for ₹4.9m worth of shares at a price of ₹579 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹584. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.1% of Tumbalam Shilpa Bharath's holding.

Sree Rayalaseema Hi-Strength Hypo 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Sree Rayalaseema Hi-Strength Hypo

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Sree Rayalaseema Hi-Strength Hypo insiders own 9.8% of the company, worth about ₹984m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Sree Rayalaseema Hi-Strength Hypo Insiders?

The fact that there have been no Sree Rayalaseema Hi-Strength Hypo insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Sree Rayalaseema Hi-Strength Hypo, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Sree Rayalaseema Hi-Strength Hypo that deserve your attention before buying any shares.

Of course Sree Rayalaseema Hi-Strength Hypo 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.