Insiders Of Zaggle Prepaid Ocean Services Retain ₹44m Of Investment Selling At Higher Prices

While it’s been a great week for Zaggle Prepaid Ocean Services Limited (NSE:ZAGGLE) shareholders after stock gained 12%, they should consider it with a grain of salt. Although prices were relatively low, insiders chose to sell ₹44m worth of stock in the past 12 months. This could be a sign of impending weakness.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Zaggle Prepaid Ocean Services

Zaggle Prepaid Ocean Services Insider Transactions Over The Last Year

The insider, Saurabh Puri, made the biggest insider sale in the last 12 months. That single transaction was for ₹17m worth of shares at a price of ₹344 each. That means that an insider was selling shares at slightly below the current price (₹471). 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 only 36% of Saurabh Puri's holding.

All up, insiders sold more shares in Zaggle Prepaid Ocean Services than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Zaggle Prepaid Ocean Services

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Zaggle Prepaid Ocean Services insiders own 45% of the company, worth about ₹28b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Zaggle Prepaid Ocean Services Insider Transactions Indicate?

The fact that there have been no Zaggle Prepaid Ocean Services insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Zaggle Prepaid Ocean Services 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. You'd be interested to know, that we found 1 warning sign for Zaggle Prepaid Ocean Services and we suggest you have a look.

But note: Zaggle Prepaid Ocean Services 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.