Govardhan Dhoot Is The Chairman & MD of Mangalam Drugs & Organics Limited (NSE:MANGALAM) And They Just Sold 47% Of Their Shares

Investors may wish to note that the Chairman & MD of Mangalam Drugs & Organics Limited, Govardhan Dhoot, recently netted ₹1.3m from selling stock, receiving an average price of ₹142. It wasn't a huge sale, but it did reduce their holding by 47%. This does not instill confidence.

Check out our latest analysis for Mangalam Drugs & Organics

Mangalam Drugs & Organics Insider Transactions Over The Last Year

Notably, that recent sale by Govardhan Dhoot is the biggest insider sale of Mangalam Drugs & Organics shares that we've seen in the last year. That means that even when the share price was below the current price of ₹146, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 47% of Govardhan Dhoot's holding.

In the last year Mangalam Drugs & Organics insiders didn't buy any company stock. 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 26% of Mangalam Drugs & Organics shares, worth about ₹588m. 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 Mangalam Drugs & Organics Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mangalam Drugs & Organics. In terms of investment risks, we've identified 4 warning signs with Mangalam Drugs & Organics and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.