J. B. Chemicals & Pharmaceuticals CEO & Whole-Time Director Nikhil Chopra Sells 63% Of Holding

We wouldn't blame J. B. Chemicals & Pharmaceuticals Limited (NSE:JBCHEPHARM) shareholders if they were a little worried about the fact that Nikhil Chopra, the CEO & Whole-Time Director recently netted about ₹43m selling shares at an average price of ₹1,736. Probably the most concerning element of the whole transaction is that the disposal amounted to 63% of their entire holding.

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

J. B. Chemicals & Pharmaceuticals Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Whole-Time Director Nikhil Chopra was not their only sale of J. B. Chemicals & Pharmaceuticals shares this year. They previously made an even bigger sale of -₹64m worth of shares at a price of ₹1,599 per share. That means that even when the share price was below the current price of ₹1,811, an insider wanted to cash in some shares. 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. 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 100% of Nikhil Chopra's holding.

Insiders in J. B. Chemicals & Pharmaceuticals 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of J. B. Chemicals & Pharmaceuticals

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, J. B. Chemicals & Pharmaceuticals insiders have about 0.1% of the stock, worth approximately ₹354m. We consider this fairly low insider ownership.

So What Do The J. B. Chemicals & Pharmaceuticals Insider Transactions Indicate?

Insiders haven't bought J. B. Chemicals & Pharmaceuticals stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since J. B. Chemicals & Pharmaceuticals 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 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of J. B. Chemicals & Pharmaceuticals.

But note: J. B. Chemicals & Pharmaceuticals 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.