This Insider Has Just Sold Shares In Parsvnath Developers

We'd be surprised if Parsvnath Developers Limited (NSE:PARSVNATH) shareholders haven't noticed that the Founder & Chairman, Pradeep Jain, recently sold ₹19m worth of stock at ₹19.00 per share. However, the silver lining is that the sale only reduced their total holding by 1.1%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Parsvnath Developers

Parsvnath Developers Insider Transactions Over The Last Year

Notably, that recent sale by Pradeep Jain is the biggest insider sale of Parsvnath Developers shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹19.42. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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 1.1% of Pradeep Jain's holding.

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

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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 Parsvnath Developers insiders own 55% of the company, worth about ₹4.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Parsvnath Developers Insider Transactions Indicate?

An insider hasn't bought Parsvnath Developers stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. 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. 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. Be aware that Parsvnath Developers is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

Of course Parsvnath Developers 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.