Shareholders might want to keep a close eye on Aurum PropTech Limited (NSE:AURUM) after insiders sold ₹222m stock earlier this year

While Aurum PropTech Limited (NSE:AURUM) shareholders have had a good week with the stock up 18%, they shouldn't let their guards down. Even though stock prices were relatively low, insiders elected to sell ₹222m worth of stock in the last year, which could indicate some expected downturn.

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.

See our latest analysis for Aurum PropTech

The Last 12 Months Of Insider Transactions At Aurum PropTech

In the last twelve months, the biggest single sale by an insider was when the insider, Ketan Mehta, sold ₹166m worth of shares at a price of ₹77.00 per share. That means that an insider was selling shares at slightly below the current price (₹147). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Ketan Mehta's holding.

Over the last year, we can see that insiders have bought 58.00k shares worth ₹5.2m. But insiders sold 2.88m shares worth ₹222m. Over the last year we saw more insider selling of Aurum PropTech shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Aurum PropTech Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 13% of Aurum PropTech shares, worth about ₹561m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Aurum PropTech Tell Us?

It doesn't really mean much that no insider has traded Aurum PropTech 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 Aurum PropTech insiders selling. 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 5 warning signs for Aurum PropTech you should know about.

But note: Aurum PropTech 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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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.