Prozone Realty Insiders Benefit From Selling Stock At ₹30.51

While it’s been a great week for Prozone Realty Limited (NSE:PROZONER) shareholders after stock gained 15%, they should consider it with a grain of salt. The fact that insiders chose to dispose of ₹15m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Prozone Realty

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Non-Executive Director, Salil Chaturvedi, sold ₹7.6m worth of shares at a price of ₹33.75 per share. That means that an insider was selling shares at slightly below the current price (₹49.30). 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 just 1.8% of Salil Chaturvedi's stake.

Insiders in Prozone Realty didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Prozone Realty

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Does Prozone Realty Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Prozone Realty insiders own 50% of the company, currently worth about ₹3.8b based on the recent share price. 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 Prozone Realty Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Prozone Realty insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prozone Realty. While conducting our analysis, we found that Prozone Realty has 2 warning signs and it would be unwise to ignore these.

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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 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.