Selling Onward Technologies Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Onward Technologies Limited's (NSE:ONWARDTEC) stock price has dropped 12% in the previous week, but insiders who sold ₹164m in stock over the past year have had less luck. The average selling price of ₹620 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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.

Check out our latest analysis for Onward Technologies

The Last 12 Months Of Insider Transactions At Onward Technologies

Over the last year, we can see that the biggest insider sale was by the MD & Executive Director, Jigar Mehta, for ₹124m worth of shares, at about ₹619 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹403. So it is hard to draw any strong conclusion from it.

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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Onward Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Onward Technologies

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Onward Technologies insiders own 9.3% of the company, worth about ₹846m. 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?

The fact that there have been no Onward Technologies insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Onward Technologies, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Onward Technologies and understanding this should be part of your investment process.

Of course Onward Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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