This Insider Has Just Sold Shares In Astra Microwave Products Limited (NSE:ASTRAMICRO)

By
Simply Wall St
Published
September 27, 2021
NSEI:ASTRAMICRO
Source: Shutterstock

We'd be surprised if Astra Microwave Products Limited (NSE:ASTRAMICRO) shareholders haven't noticed that an insider, Chennareddy Prameelamma, recently sold ₹28m worth of stock at ₹205 per share. The eyebrow raising move amounted to a reduction of 13% in their holding.

Check out our latest analysis for Astra Microwave Products

Astra Microwave Products Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Bommaraju Lakshmi, sold ₹44m worth of shares at a price of ₹111 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹198. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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.

In total, Astra Microwave Products insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:ASTRAMICRO Insider Trading Volume September 28th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Astra Microwave Products

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of Astra Microwave Products shares, worth about ₹2.8b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Astra Microwave Products Insider Transactions Indicate?

An insider hasn't bought Astra Microwave Products stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Astra Microwave Products (including 1 which can't be ignored).

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.

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.

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