Medicamen Biotech Insiders Make Handsome Sum Selling Stock At ₹170 Per Share

Medicamen Biotech Limited's (NSE:MEDICAMEQ) stock rose 16% last week, but insiders who sold ₹20m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of ₹170, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Medicamen Biotech

Medicamen Biotech Insider Transactions Over The Last Year

The insider, Geetika Madan, made the biggest insider sale in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹384 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹486. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 43% of Geetika Madan's holding. Geetika Madan was the only individual insider to sell over the last year.

Geetika Madan sold a total of 116.37k shares over the year at an average price of ₹170. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.

Medicamen Biotech Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Medicamen Biotech shares. In total, insider Geetika Madan dumped ₹20m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Medicamen Biotech

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Medicamen Biotech insiders own 5.2% of the company, worth about ₹326m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Medicamen Biotech Tell Us?

An insider sold Medicamen Biotech shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Medicamen Biotech and we suggest you have a look.

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.