MD & Executive Director Jigar Mehta Sold A Bunch Of Shares In Onward Technologies

We wouldn't blame Onward Technologies Limited (NSE:ONWARDTEC) shareholders if they were a little worried about the fact that Jigar Mehta, the MD & Executive Director recently netted about ₹124m selling shares at an average price of ₹619. That sale reduced their total holding by 35% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Onward Technologies

The Last 12 Months Of Insider Transactions At Onward Technologies

In fact, the recent sale by Jigar Mehta was the biggest sale of Onward Technologies shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹635, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 35% of Jigar Mehta's holding.

In the last year Onward Technologies 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Onward Technologies shares, worth about ₹1.5b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Onward Technologies Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Onward Technologies is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For example - Onward Technologies has 3 warning signs we think you should be aware of.

But note: Onward 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.

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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.