Have Insiders Sold Sunflag Iron and Steel Company Limited (NSE:SUNFLAG) Shares Recently?

By
Simply Wall St
Published
March 06, 2021
NSEI:SUNFLAG

Investors may wish to note that an insider of Sunflag Iron and Steel Company Limited, Charanjiv Dhawan, recently netted ₹2.0m from selling stock, receiving an average price of ₹66.94. It might not be a huge sale, but it did reduce their holding size 30%, hardly encouraging.

View our latest analysis for Sunflag Iron and Steel

The Last 12 Months Of Insider Transactions At Sunflag Iron and Steel

In fact, the recent sale by insider Charanjiv Dhawan was not their only sale of Sunflag Iron and Steel shares this year. Earlier in the year, they fetched ₹37.98 per share in a -₹2.8m sale. That means that even when the share price was below the current price of ₹66.20, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 34%of Charanjiv Dhawan's holding.

Sunflag Iron and Steel insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:SUNFLAG Insider Trading Volume March 7th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Sunflag Iron and Steel Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sunflag Iron and Steel insiders own about ₹3.4b worth of shares. That equates to 28% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Sunflag Iron and Steel Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Sunflag Iron and Steel is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Sunflag Iron and Steel that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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