Insiders Could Have Profited By Holding onto Tinna Rubber and Infrastructure Shares Despite 10% Drop

Tinna Rubber and Infrastructure Limited's (NSE:TINNARUBR) value has fallen 10% in the last week, but insiders who sold ₹216m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹1,764 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've discovered 3 warning signs about Tinna Rubber and Infrastructure. View them for free.

Tinna Rubber and Infrastructure Insider Transactions Over The Last Year

The Chairman & MD, Bhupinder Sekhri, made the biggest insider sale in the last 12 months. That single transaction was for ₹216m worth of shares at a price of ₹1,787 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹947. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Bhupinder Sekhri. Notably Bhupinder Sekhri was also the biggest buyer, having purchased ₹4.1m worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Tinna Rubber and Infrastructure

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).

Tinna Rubber and Infrastructure Insiders Bought Stock Recently

There was some insider buying at Tinna Rubber and Infrastructure over the last quarter. Chairman & MD Bhupinder Sekhri purchased ₹4.1m worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Tinna Rubber and Infrastructure insiders own 72% of the company, currently worth about ₹12b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Tinna Rubber and Infrastructure Insiders?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Tinna Rubber and Infrastructure has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

But note: Tinna Rubber and Infrastructure 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.