Medicamen Biotech Insiders Benefitted From Selling Stock At ₹176

Despite a 10% gain in Medicamen Biotech Limited's (NSE:MEDICAMEQ) stock price this week, shareholders shouldn't let up. The fact that insiders chose to dispose of ₹21m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Medicamen Biotech

Medicamen Biotech Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Geetika Madan, sold ₹11m worth of shares at a price of ₹384 per share. That means that even when the share price was below the current price of ₹549, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 43% of Geetika Madan's holding. The only individual insider seller over the last year was Geetika Madan.

Geetika Madan ditched 118.86k shares over the year. The average price per share was ₹176. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Medicamen Biotech Insiders Are Selling The Stock

The last three months saw some Medicamen Biotech insider selling. insider Geetika Madan divested only ₹1.1m worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.2% of Medicamen Biotech shares, worth about ₹363m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Medicamen Biotech Insiders?

An insider hasn't bought Medicamen Biotech stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Medicamen Biotech is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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 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.