36% Of This Sudarshan Chemical Industries Insider's Holdings Were Sold

Looking at Sudarshan Chemical Industries Limited's (NSE:SUDARSCHEM ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Sudarshan Chemical Industries

In the last twelve months, the biggest single sale by an insider was when the insider, Manan Rathi, sold ₹287m worth of shares at a price of ₹957 per share. That means that an insider was selling shares at slightly below the current price (₹1,254). 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. This single sale was just 36% of Manan Rathi's stake. Manan Rathi was the only individual insider to sell shares in the last twelve months.

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!

View our latest analysis for Sudarshan Chemical Industries

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Insider Ownership Of Sudarshan Chemical Industries

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Sudarshan Chemical Industries insiders own 35% of the company, worth about ₹35b. 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 Sudarshan Chemical Industries Insiders?

It doesn't really mean much that no insider has traded Sudarshan Chemical Industries shares in the last quarter. While we feel good about high insider ownership of Sudarshan Chemical Industries, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Sudarshan Chemical Industries you should be aware of.

Of course Sudarshan Chemical Industries 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.