Have Sunflag Iron and Steel Company Limited (NSE:SUNFLAG) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
November 23, 2021
NSEI:SUNFLAG
Source: Shutterstock

Investors may wish to note that an insider of Sunflag Iron and Steel Company Limited, Charanjiv Dhawan, recently netted ₹79k from selling stock, receiving an average price of ₹78.70. However we note that the sale only shrunk their holding by 1.4%.

View our latest analysis for Sunflag Iron and Steel

Sunflag Iron and Steel Insider Transactions Over The Last Year

Notably, that recent sale by insider Charanjiv Dhawan was not the only time they sold Sunflag Iron and Steel shares this year. They previously made an even bigger sale of -₹2.0m worth of shares at a price of ₹66.94 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹74.50. 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 30%of Charanjiv Dhawan's holding.

Sunflag Iron and Steel insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NSEI:SUNFLAG Insider Trading Volume November 24th 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?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sunflag Iron and Steel insiders own 24% of the company, worth about ₹3.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sunflag Iron and Steel Insider Transactions Indicate?

An insider 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. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 1 warning sign with Sunflag Iron and Steel and understanding this should be part of your investment process.

Of course Sunflag Iron and Steel 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, but not derivative transactions.

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.

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