Have Mittal Life Style Limited (NSE:MITTAL) Insiders Been Selling Their Stock?

We note that the Mittal Life Style Limited (NSE:MITTAL) Executive Chairman & MD, Brijeshkumar Mittal, recently sold ₹358k worth of stock for ₹11.94 per share. It wasn't a huge sale, but it did reduce their holding by 12%. This does not instill confidence.

Check out our latest analysis for Mittal Life Style

The Last 12 Months Of Insider Transactions At Mittal Life Style

In fact, the recent sale by Executive Chairman & MD Brijeshkumar Mittal was not their only sale of Mittal Life Style shares this year. They previously made an even bigger sale of -₹13m worth of shares at a price of ₹155 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹11.45). So it may not shed much light on insider confidence at current levels.

In the last year Mittal Life Style insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Mittal Life Style

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. Insiders own 17% of Mittal Life Style shares, worth about ₹23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Mittal Life Style Insiders?

An insider sold Mittal Life Style shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. When we did our research, we found 4 warning signs for Mittal Life Style (2 are a bit concerning!) that we believe deserve your full attention.

Of course Mittal Life Style may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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