The MD & Executive Director of Vikas EcoTech Limited (NSE:VIKASECO), Vikas Garg, Just Sold 93% Of Their Holding

We wouldn't blame Vikas EcoTech Limited (NSE:VIKASECO) shareholders if they were a little worried about the fact that Vikas Garg, the MD & Executive Director recently netted about ₹60m selling shares at an average price of ₹5.26. That diminished their holding by a very significant 93%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Vikas EcoTech

Vikas EcoTech Insider Transactions Over The Last Year

In fact, the recent sale by Vikas Garg was the biggest sale of Vikas EcoTech shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹4.90. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Vikas EcoTech didn't buy any shares in the last year. 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Vikas EcoTech shares, worth about ₹186m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Vikas EcoTech Insider Transactions Indicate?

Insiders sold Vikas EcoTech shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 5 warning signs we've spotted with Vikas EcoTech (including 2 which are a bit unpleasant).

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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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