Don't Ignore The Insider Selling In Globesecure Technologies

We'd be surprised if Globesecure Technologies Limited (NSE:GSTL) shareholders haven't noticed that the MD & Chairman, Ragavan Rajkumar, recently sold ₹21m worth of stock at ₹39.39 per share. That sale was 11% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Globesecure Technologies

Globesecure Technologies Insider Transactions Over The Last Year

In fact, the recent sale by Ragavan Rajkumar was the biggest sale of Globesecure 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 ₹39.30. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Globesecure Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Globesecure Technologies insiders own 83% of the company, worth about ₹296m. 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 Do The Globesecure Technologies Insider Transactions Indicate?

An insider hasn't bought Globesecure 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. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that Globesecure Technologies is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...

But note: Globesecure Technologies 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.