Possible Signal As Transindia Real Estate Insiders Sell ₹84m In Stock

Even though Transindia Real Estate Limited (NSE:TREL) stock gained 10% last week, insiders who sold ₹84m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹43.17, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Transindia Real Estate

Transindia Real Estate Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Shashi Kiran Shetty, for ₹37m worth of shares, at about ₹46.73 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹31.12). So it may not shed much light on insider confidence at current levels. Shashi Kiran Shetty was the only individual insider to sell over the last year.

Shashi Kiran Shetty ditched 1.95m shares over the year. The average price per share was ₹43.17. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Transindia Real Estate

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Transindia Real Estate insiders own 71% of the company, worth about ₹5.4b. 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 Transindia Real Estate Tell Us?

The fact that there have been no Transindia Real Estate insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Transindia Real Estate, we can't say the same about the selling of shares. 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. Our analysis shows 3 warning signs for Transindia Real Estate (1 is significant!) and we strongly recommend you look at these before investing.

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.