Stock Analysis

Arvind SmartSpaces Limited (NSE:ARVSMART) drops to ₹240, yet insiders may have sold too early fetching only ₹229 apiece

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Arvind SmartSpaces Limited's (NSE:ARVSMART) stock price has dropped 10% in the previous week, but insiders who sold ₹23m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹229 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Arvind SmartSpaces

Arvind SmartSpaces Insider Transactions Over The Last Year

The MD, CEO & Executive Director, Kamal Sham Singal, made the biggest insider sale in the last 12 months. That single transaction was for ₹23m worth of shares at a price of ₹229 each. That means that an insider was selling shares at slightly below the current price (₹240). 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. This single sale was 51% of Kamal Sham Singal's stake. Kamal Sham Singal was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:ARVSMART Insider Trading Volume March 17th 2023

I will like Arvind SmartSpaces 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 Of Arvind SmartSpaces

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. Our data indicates that Arvind SmartSpaces insiders own about ₹752m worth of shares (which is 6.9% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Arvind SmartSpaces Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Arvind SmartSpaces insiders selling. While we like knowing 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. Every company has risks, and we've spotted 2 warning signs for Arvind SmartSpaces (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Arvind SmartSpaces may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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