Have Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Insiders Been Selling Their Stock?

Investors may wish to note that the Whole Time Director of Sun Pharmaceutical Industries Limited, Sailesh Desai, recently netted ₹3.9m from selling stock, receiving an average price of ₹966. On the bright side, that's just a small sale and only reduced their holding by 0.2%.

View our latest analysis for Sun Pharmaceutical Industries

Sun Pharmaceutical Industries Insider Transactions Over The Last Year

Notably, that recent sale by Whole Time Director Sailesh Desai was not the only time they sold Sun Pharmaceutical Industries shares this year. Earlier in the year, they fetched ₹946 per share in a -₹32m sale. That means that an insider was selling shares at slightly below the current price (₹972). 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. It is worth noting that this sale was only 1.6% of Sailesh Desai's holding.

Insiders in Sun Pharmaceutical Industries didn't buy any shares in the last year. 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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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. 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 Sun Pharmaceutical Industries insiders own 12% of the company, worth about ₹282b. 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 Sun Pharmaceutical Industries Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Sun Pharmaceutical Industries you should be aware of.

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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. 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.