Have Vinati Organics Limited (NSE:VINATIORGA) Insiders Been Selling Their Stock?

Investors may wish to note that the Chief Financial Officer of Vinati Organics Limited, Nand Goyal, recently netted ₹376k from selling stock, receiving an average price of ₹1,505. However we note that the sale only shrunk their holding by 1.6%.

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The Last 12 Months Of Insider Transactions At Vinati Organics

In fact, the recent sale by Chief Financial Officer Nand Goyal was not their only sale of Vinati Organics shares this year. Earlier in the year, they fetched ₹1,185 per share in a -₹1.1m sale. That means that even when the share price was below the current price of ₹1,405, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 5.5% of Nand Goyal's stake.

Nand Goyal divested 1.40k shares over the last 12 months at an average price of ₹1,266. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Vinati Organics insiders own 28% of the company, worth about ₹41b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Vinati Organics Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Vinati Organics.

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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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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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