Have Panacea Biotec Insiders Been Selling Stock?

We'd be surprised if Panacea Biotec Limited (NSE:PANACEABIO) shareholders haven't noticed that the Joint MD & Executive Director, Sandeep Jain, recently sold ₹29m worth of stock at ₹391 per share. However, the silver lining is that the sale only reduced their total holding by 0.8%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Panacea Biotec

The Last 12 Months Of Insider Transactions At Panacea Biotec

Notably, that recent sale by Joint MD & Executive Director Sandeep Jain was not the only time they sold Panacea Biotec shares this year. Earlier in the year, they fetched ₹267 per share in a -₹33m sale. That means that an insider was selling shares at slightly below the current price (₹445). 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. This single sale was just 1.3% of Sandeep Jain's stake.

Sandeep Jain divested 565.82k shares over the last 12 months at an average price of ₹264. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Panacea Biotec

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Panacea Biotec insiders own 69% of the company, worth about ₹19b. 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 sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 2 warning signs we've spotted with Panacea Biotec (including 1 which is concerning).

But note: Panacea Biotec 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. 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.