Have Suratwwala Business Group Insiders Been Selling Stock?

We'd be surprised if Suratwwala Business Group Limited (NSE:SBGLP) shareholders haven't noticed that the Chairman & MD, Jatin Suratwala, recently sold ₹12m worth of stock at ₹329 per share. On the bright side, that sale was only 0.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Suratwwala Business Group

Suratwwala Business Group Insider Transactions Over The Last Year

In fact, the recent sale by Jatin Suratwala was the biggest sale of Suratwwala Business Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹332. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 0.4%of Jatin Suratwala's holding.

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: insiders have been buying them).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Suratwwala Business Group insiders own about ₹4.8b worth of shares (which is 83% of the company). 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 Does This Data Suggest About Suratwwala Business Group Insiders?

An insider hasn't bought Suratwwala Business Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Suratwwala Business Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Suratwwala Business Group. Case in point: We've spotted 3 warning signs for Suratwwala Business Group you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.