Signpost India Insiders Who Sold Avert ₹2.1b Market Cap Dip

Insiders at Signpost India Limited (NSE:SIGNPOST) sold ₹91m worth of stock at an average price of ₹263 a share over the past year, making the most of their investment. After the stock price dropped 11% last week, the company's market value declined by ₹2.1b, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Signpost India

Signpost India Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Non-Independent Director, Niren Suchanti, sold ₹75m worth of shares at a price of ₹262 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹334. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.8% of Niren Suchanti's holding. The only individual insider seller over the last year was Niren Suchanti.

Niren Suchanti divested 347.55k shares over the last 12 months at an average price of ₹263. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Signpost India insiders own 76% of the company, currently worth about ₹14b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Signpost India Insider Transactions Indicate?

The fact that there have been no Signpost India insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Signpost India, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Signpost India. For example, Signpost India has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.