Don't Ignore The Insider Selling In Panacea Biotec

We'd be surprised if Panacea Biotec Limited (NSE:PANACEABIO) shareholders haven't noticed that the Joint MD & Executive Director, Sandeep Jain, recently sold ₹9.6m worth of stock at ₹236 per share. On the bright side, that sale was only 0.4% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Panacea Biotec

Panacea Biotec Insider Transactions Over The Last Year

In fact, the recent sale by Sandeep Jain was the biggest sale of Panacea Biotec shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹246. 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. We note that the biggest single sale was only 0.4% of Sandeep Jain's holding.

Sandeep Jain ditched 199.35k shares over the year. The average price per share was ₹182. 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!

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Does Panacea Biotec Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Panacea Biotec insiders own 70% of the company, currently worth about ₹10b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Panacea Biotec Insiders?

An insider hasn't bought Panacea Biotec 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Panacea Biotec (including 1 which is potentially serious).

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.