Insider Sales At Vimta Labs Landed A Good Price

Last week, Vimta Labs Limited's (NSE:VIMTALABS) stock jumped 11%, but insiders who sold ₹19m worth of stock in over the past year are likely to be in a better position. Selling at an average price of ₹414, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Vimta Labs

Vimta Labs Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Rajya Vasireddi, sold ₹16m worth of shares at a price of ₹408 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹497. 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 95% of Rajya Vasireddi's stake.

Insiders in Vimta Labs didn't buy any shares in 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 35% of Vimta Labs shares, worth about ₹3.8b. 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 Vimta Labs Insiders?

It doesn't really mean much that no insider has traded Vimta Labs 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 Vimta Labs 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 Vimta Labs you should be aware of.

But note: Vimta Labs 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, 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.