Insiders At J. B. Chemicals & Pharmaceuticals Sold ₹447m In Stock, Alluding To Potential Weakness

The fact that multiple J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At J. B. Chemicals & Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the insider, Sandeep Nasa, sold ₹76m worth of shares at a price of ₹1,815 per share. So what is clear is that an insider saw fit to sell at around the current price of ₹1,748. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

J. B. Chemicals & Pharmaceuticals insiders didn't buy any shares over 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!

Check out our latest analysis for J. B. Chemicals & Pharmaceuticals

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Insider Ownership Of J. B. Chemicals & Pharmaceuticals

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. Based on our data, J. B. Chemicals & Pharmaceuticals insiders have about 0.1% of the stock, worth approximately ₹374m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At J. B. Chemicals & Pharmaceuticals Tell Us?

The fact that there have been no J. B. Chemicals & Pharmaceuticals insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of J. B. Chemicals & Pharmaceuticals insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing J. B. Chemicals & Pharmaceuticals. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of J. B. Chemicals & Pharmaceuticals.

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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 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.