Insiders At Time Technoplast Sold ₹46m In Stock, Alluding To Potential Weakness

Quite a few Time Technoplast Limited (NSE:TIMETECHNO) insiders sold their shares over the past year, which may be a cause for concern. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

Check out our latest analysis for Time Technoplast

The Last 12 Months Of Insider Transactions At Time Technoplast

Over the last year, we can see that the biggest insider sale was by the Operation & Technical Director and Whole Time Director, Naveen Mahendra Jain, for ₹19m worth of shares, at about ₹299 per share. That means that an insider was selling shares at slightly below the current price (₹431). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 1.4% of Naveen Mahendra Jain's holding.

Insiders in Time Technoplast didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Time Technoplast

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. We usually like to see fairly high levels of insider ownership. Time Technoplast insiders own 8.9% of the company, currently worth about ₹8.7b based on the recent share price. 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 Time Technoplast Insiders?

The fact that there have been no Time Technoplast insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Time Technoplast, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Time Technoplast. You'd be interested to know, that we found 1 warning sign for Time Technoplast and we suggest you have a look.

Of course Time Technoplast 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.