Have Insiders Sold Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) Shares Recently?

Some Sudarshan Chemical Industries Limited (NSE:SUDARSCHEM) shareholders may be a little concerned to see that insider Archana Rathi recently sold a substantial ₹337m worth of stock at a price of ₹463 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Sudarshan Chemical Industries

Sudarshan Chemical Industries Insider Transactions Over The Last Year

In fact, the recent sale by Archana Rathi was the biggest sale of Sudarshan Chemical Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹507. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Archana Rathi's stake.

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!

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Insider Ownership of Sudarshan Chemical Industries

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 Sudarshan Chemical Industries insiders own 56% of the company, worth about ₹20b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Sudarshan Chemical Industries Insiders?

An insider hasn't bought Sudarshan Chemical Industries stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 3 warning signs with Sudarshan Chemical Industries and understanding them should be part of your investment process.

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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, but not derivative transactions.

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