Have Sequent Scientific Limited (NSE:SEQUENT) Insiders Been Selling Their Stock?

We wouldn't blame Sequent Scientific Limited (NSE:SEQUENT) shareholders if they were a little worried about the fact that Yalarvarthy Rani, a company insider, recently netted about ₹126m selling shares at an average price of ₹170. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

Check out our latest analysis for Sequent Scientific

Sequent Scientific Insider Transactions Over The Last Year

In fact, the recent sale by insider Yalarvarthy Rani was not their only sale of Sequent Scientific shares this year. They previously made an even bigger sale of -₹1.1b worth of shares at a price of ₹86.95 per share. That means that even when the share price was below the current price of ₹171, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 51% of Yalarvarthy Rani's holding.

In total, Sequent Scientific insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Sequent Scientific better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sequent Scientific insiders own 6.9% of the company, worth about ₹2.9b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Sequent Scientific Insiders?

Unfortunately, there has been more insider selling of Sequent Scientific stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Sequent Scientific is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sequent Scientific. Every company has risks, and we've spotted 1 warning sign for Sequent Scientific you should know about.

Of course Sequent Scientific 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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