Are Insiders Selling Jubilant Life Sciences Limited (NSE:JUBILANT) Stock?

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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Jubilant Life Sciences Limited (NSE:JUBILANT), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'

See our latest analysis for Jubilant Life Sciences

Jubilant Life Sciences Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the , Renu Khanna, sold ₹5.2m worth of shares at a price of ₹865 per share. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. The silver lining is that this sell-down took place above the latest price (₹473). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders netted ₹17m for 20838 shares sold. In the last year Jubilant Life Sciences insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Insider Ownership of Jubilant Life Sciences

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Jubilant Life Sciences insiders own about ₹2.4b worth of shares. That equates to 3.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Jubilant Life Sciences Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Jubilant Life Sciences shares in the last quarter. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the Jubilant Life Sciences insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Jubilant Life Sciences.

But note: Jubilant Life Sciences 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.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.