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Insider Sellers Might Regret Selling Raymond Shares at a Lower Price Than Current Market Value
Raymond Limited's (NSE:RAYMOND) stock price has dropped 13% in the previous week, but insiders who sold ₹388m in stock over the past year have had less luck. Given that the average selling price of ₹7,090 is still lower than the current share price, insiders would probably have been better off keeping their shares.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Raymond
The Last 12 Months Of Insider Transactions At Raymond
Over the last year, we can see that the biggest insider sale was by the insider, Shephali Ruia, for ₹295m worth of shares, at about ₹22,683 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹1,523. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Shephali Ruia.
Shephali Ruia divested 54.66k shares over the last 12 months at an average price of ₹7,090. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Raymond Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Raymond insiders own 1.7% of the company, worth about ₹1.7b. 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 Do The Raymond Insider Transactions Indicate?
The fact that there have been no Raymond insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Raymond, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Raymond is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
About NSEI:RAYMOND
Flawless balance sheet, undervalued and pays a dividend.