After a 3.4% dip, insiders are undoubtedly glad they sold UltraTech Cement Limited (NSE:ULTRACEMCO)

Over the past year, insiders sold ₹18m worth of UltraTech Cement Limited (NSE:ULTRACEMCO) stock at an average price of ₹6,882 per share allowing them to get the most out of their money. The company's market valuation decreased by ₹66b after the stock price dropped 3.4% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for UltraTech Cement

UltraTech Cement Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Group Executive President & Chief Marketing Officer Vivek Agrawal for ₹4.1m worth of shares, at about ₹6,825 per share. That means that an insider was happy to buy shares at above the current price of ₹6,617. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Vivek Agrawal.

All up, insiders sold more shares in UltraTech Cement than they bought, 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.1% of UltraTech Cement shares, worth about ₹2.2b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The UltraTech Cement Insider Transactions Indicate?

The fact that there have been no UltraTech Cement insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the UltraTech Cement insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for UltraTech Cement.

But note: UltraTech Cement 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.