Have AAA Technologies Insiders Been Selling Stock?

We wouldn't blame AAA Technologies Limited (NSE:AAATECH) shareholders if they were a little worried about the fact that Anjay Agarwal, the Chairman & MD recently netted about ₹45m selling shares at an average price of ₹78.62. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At AAA Technologies

In fact, the recent sale by Anjay Agarwal was the biggest sale of AAA Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹77.00. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for AAA Technologies

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Does AAA Technologies Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that AAA Technologies insiders own 76% of the company, worth about ₹746m. 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 Does This Data Suggest About AAA Technologies Insiders?

An insider hasn't bought AAA Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that AAA Technologies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for AAA Technologies you should know about.

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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.