Have Allied Digital Services Insiders Been Selling Stock?

Anyone interested in Allied Digital Services Limited (NSE:ADSL) should probably be aware that a company insider, Hubert Wong, recently divested ₹19m worth of shares in the company, at an average price of ₹301 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Allied Digital Services

The Last 12 Months Of Insider Transactions At Allied Digital Services

Notably, that recent sale by Hubert Wong is the biggest insider sale of Allied Digital Services shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹273. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Allied Digital Services didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Allied Digital Services

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Allied Digital Services insiders own 53% of the company, worth about ₹8.1b. 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 Allied Digital Services Insiders?

Insiders haven't bought Allied Digital Services stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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 3 warning signs for Allied Digital Services (1 is significant!) that we believe deserve your full attention.

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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.