Par Drugs and Chemicals Falls To ₹84.93, But Insiders Sold At Lower Price

Despite the fact that Par Drugs and Chemicals Limited's (NSE:PAR) value has dropped 13% in the last week insiders who sold ₹23m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹224 is still lower than the current share price.

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.

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The Last 12 Months Of Insider Transactions At Par Drugs and Chemicals

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Jignesh Savani, sold ₹23m worth of shares at a price of ₹231 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹84.93). So it may not tell us anything about how insiders feel about the current share price. Jignesh Savani was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Par Drugs and Chemicals

I will like Par Drugs and Chemicals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Par Drugs and Chemicals

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Par Drugs and Chemicals insiders own 78% of the company, worth about ₹815m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Par Drugs and Chemicals Tell Us?

The fact that there have been no Par Drugs and Chemicals insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Par Drugs and Chemicals insiders selling. 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. For example - Par Drugs and Chemicals has 1 warning sign we think you should be aware of.

Of course Par Drugs and Chemicals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.