Avalon Technologies' Stock Sinks To ₹480, But Insiders Sold Even Lower

Despite the fact that Avalon Technologies Limited's (NSE:AVALON) value has dropped 11% in the last week insiders who sold ₹18m worth of stock in the past 12 months have had less success. The average selling price of ₹573 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 would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Avalon Technologies

Avalon Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the VP & CEO of Sienna ECAD Technologies Pvt. Ltd, O. Sathish, for ₹9.0m worth of shares, at about ₹601 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹480. So it may not shed much light on insider confidence at current levels.

In the last year Avalon Technologies insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Avalon Technologies Have Sold Stock Recently

The last three months saw significant insider selling at Avalon Technologies. Specifically, insiders ditched ₹18m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Avalon Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Avalon Technologies insiders own 57% of the company, currently worth about ₹18b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Avalon Technologies Tell Us?

Insiders haven't bought Avalon Technologies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 2 warning signs for Avalon Technologies and we suggest you have a look.

Of course Avalon 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.