Insiders Find Solace Selling ₹195m In Stock With Panacea Biotec's Price Down 11%

Insiders seem to have made the most of their holdings by selling ₹195m worth of Panacea Biotec Limited (NSE:PANACEABIO) stock at an average sell price of ₹291 during the past year. The company's market worth decreased by ₹3.7b over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 1 warning sign investors should be aware of before investing in Panacea Biotec. Read for free now.

The Last 12 Months Of Insider Transactions At Panacea Biotec

The Joint MD & Executive Director, Sandeep Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹33m worth of shares at a price of ₹267 each. That means that an insider was selling shares at slightly below the current price (₹504). 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. 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. This single sale was just 1.3% of Sandeep Jain's stake. The only individual insider seller over the last year was Sandeep Jain.

Sandeep Jain divested 668.98k shares over the last 12 months at an average price of ₹291. 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!

Check out our latest analysis for Panacea Biotec

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Does Panacea Biotec Boast High Insider Ownership?

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. It's great to see that Panacea Biotec insiders own 69% of the company, worth about ₹21b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Panacea Biotec Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Panacea Biotec shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Panacea Biotec insiders selling. 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. Case in point: We've spotted 1 warning sign for Panacea Biotec you should be aware of.

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.