Time Technoplast Insiders Benefit From Selling Stock At ₹303

While it’s been a great week for Time Technoplast Limited (NSE:TIMETECHNO) shareholders after stock gained 14%, they should consider it with a grain of salt. In spite of the relatively cheap prices, insiders made the decision to sell ₹39m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Time Technoplast Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Operation & Technical Director and Whole Time Director, Naveen Mahendra Jain, sold ₹19m worth of shares at a price of ₹299 per share. That means that an insider was selling shares at slightly below the current price (₹437). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.4% of Naveen Mahendra Jain's holding.

In the last year Time Technoplast insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Time Technoplast

I will like Time Technoplast better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Time Technoplast Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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 Time Technoplast insiders own 8.9% of the company, worth about ₹8.8b. 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 Time Technoplast Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Time Technoplast insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Time Technoplast. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Time Technoplast.

But note: Time Technoplast may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.