Vipul Insiders Who Sold Avert ₹226m Market Cap Dip

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Insiders at Vipul Limited (NSE:VIPULLTD) sold ₹81m worth of stock at an average price of ₹5.57 a share over the past year, making the most of their investment. The company's market valuation decreased by ₹226m after the stock price dropped 14% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Vipul Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD, CEO, Punit Beriwala, sold ₹70m worth of shares at a price of ₹23.75 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 (₹9.75). So it may not shed much light on insider confidence at current levels. Punit Beriwala was the only individual insider to sell shares in the last twelve months.

Punit Beriwala ditched 14.59m shares over the year. The average price per share was ₹5.57. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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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).

Insider Ownership Of Vipul

For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 27% of Vipul shares, worth about ₹369m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Vipul Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Vipul shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Vipul insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Vipul 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.