CFO, MD & Executive Director Ajit Kumar Jain Sold A Bunch Of Shares In Ipca Laboratories

We'd be surprised if Ipca Laboratories Limited (NSE:IPCALAB) shareholders haven't noticed that the CFO, MD & Executive Director, Ajit Kumar Jain, recently sold ₹22m worth of stock at ₹1,082 per share. That sale was 32% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Ipca Laboratories

The Last 12 Months Of Insider Transactions At Ipca Laboratories

In fact, the recent sale by Ajit Kumar Jain was the biggest sale of Ipca Laboratories 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 ₹1,066. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).

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

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ipca Laboratories insiders own about ₹24b worth of shares (which is 8.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Ipca Laboratories Insiders?

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. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ipca Laboratories. At Simply Wall St, we found 1 warning sign for Ipca Laboratories that deserve your attention before buying any shares.

But note: Ipca Laboratories may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.