Don't Ignore The Fact That This Insider Just Sold Some Shares In Astra Microwave Products Limited (NSE:ASTRAMICRO)

We wouldn't blame Astra Microwave Products Limited (NSE:ASTRAMICRO) shareholders if they were a little worried about the fact that Bommaraju Lakshmi, a company insider, recently netted about ₹44m selling shares at an average price of ₹111. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

See our latest analysis for Astra Microwave Products

Astra Microwave Products Insider Transactions Over The Last Year

Notably, that recent sale by Bommaraju Lakshmi is the biggest insider sale of Astra Microwave Products shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹122. 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 46%of Bommaraju Lakshmi's holding.

Over the last year, we can see that insiders have bought 201.45k shares worth ₹12m. But they sold 619.68k shares for ₹71m. Over the last year we saw more insider selling of Astra Microwave Products shares, than buying. 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Astra Microwave Products Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of Astra Microwave Products shares, worth about ₹1.8b. 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 Astra Microwave Products Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Astra Microwave Products (1 is a bit concerning) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

When trading Astra Microwave Products or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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