This Insider Has Just Sold Shares In Tips Industries Limited (NSE:TIPSINDLTD)

We note that the Tips Industries Limited (NSE:TIPSINDLTD) Vice President of Administration, Varsha Taurani, recently sold ₹7.0m worth of stock for ₹290 per share. On the bright side, that's just a small sale and only reduced their holding by 1.1%.

See our latest analysis for Tips Industries

The Last 12 Months Of Insider Transactions At Tips Industries

Notably, that recent sale by Varsha Taurani is the biggest insider sale of Tips Industries shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹325). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 1.1% of Varsha Taurani's stake.

Insiders in Tips Industries didn't buy any shares in the last year. 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 growing companies that insiders are buying.

Does Tips Industries Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Tips Industries insiders own 82% of the company, worth about ₹3.6b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Tips Industries Insiders?

Insiders haven't bought Tips Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Tips Industries is profitable and growing, we're not too worried by this. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Tips Industries and understanding them should be part of your investment process.

Of course Tips Industries may not be the best stock to buy. So you may wish to see this free collection of high quality 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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