The President & Global Operation Head - Pipe Business of Welspun Corp Limited (NSE:WELCORP), Tribhuwan Kathayat, Just Sold 90% Of Their Holding

September 25, 2022
  •  Updated
November 13, 2022
NSEI:WELCORP
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Anyone interested in Welspun Corp Limited (NSE:WELCORP) should probably be aware that the President & Global Operation Head - Pipe Business, Tribhuwan Kathayat, recently divested ₹11m worth of shares in the company, at an average price of ₹247 each. Equally important, that sale actually reduced their holding by a full 90% which hardly makes us feel bullish about the stock.

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The Last 12 Months Of Insider Transactions At Welspun

In fact, the recent sale by Tribhuwan Kathayat was the biggest sale of Welspun shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹281. 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. It is worth noting that this sale was 90% of Tribhuwan Kathayat's holding.

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

insider-trading-volume
NSEI:WELCORP Insider Trading Volume September 25th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Welspun Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Welspun insiders own 2.5% of the company, worth about ₹1.8b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Welspun Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 4 warning signs with Welspun and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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