Anant Raj Limited (NSE:ANANTRAJ) insiders must be happy they sold stock as market cap drops to ₹16b

By
Simply Wall St
Published
May 10, 2022
NSEI:ANANTRAJ
Source: Shutterstock

Insiders at Anant Raj Limited (NSE:ANANTRAJ) sold ₹10m worth of stock at an average price of ₹74.36 a share over the past year, making the most of their investment. The company's market worth decreased by ₹2.1b over the past week after the stock price dropped 12%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Anant Raj

The Last 12 Months Of Insider Transactions At Anant Raj

The insider, Dhruv Bhasin, made the biggest insider sale in the last 12 months. That single transaction was for ₹10m worth of shares at a price of ₹74.36 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹53.00. So it may not shed much light on insider confidence at current levels. Dhruv Bhasin was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:ANANTRAJ Insider Trading Volume May 10th 2022

I will like Anant Raj better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Anant Raj insiders own about ₹11b worth of shares (which is 70% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Anant Raj Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Anant Raj shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Anant Raj insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Anant Raj. Every company has risks, and we've spotted 3 warning signs for Anant Raj (of which 2 are concerning!) you should know about.

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, but not derivative transactions.

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