Have UltraTech Cement Limited (NSE:ULTRACEMCO) Insiders Been Selling Their Stock?

Investors may wish to note that the Non-Executive Vice Chairman of UltraTech Cement Limited, Krishna Maheshwari, recently netted ₹6.4m from selling stock, receiving an average price of ₹6,389. It might not be a huge sale, but it did reduce their holding size 20%, hardly encouraging.

See our latest analysis for UltraTech Cement

The Last 12 Months Of Insider Transactions At UltraTech Cement

The Chairman Kumar Birla made the biggest insider purchase in the last 12 months. That single transaction was for ₹497m worth of shares at a price of ₹4,522 each. We do like to see buying, but this purchase was made at well below the current price of ₹6,115. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 350.01k shares for ₹1.6b. On the other hand they divested 2.65k shares, for ₹15m. Overall, UltraTech Cement insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does UltraTech Cement Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that UltraTech Cement insiders own 0.1% of the company, worth about ₹2.2b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About UltraTech Cement Insiders?

Unfortunately, there has been more insider selling of UltraTech Cement stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. And insider ownership remains quite considerable. So we're happy to look past recent trading. While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with UltraTech Cement and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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This article by Simply Wall St is general in nature. 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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