This Insider Has Just Sold Shares In D-Link (India)

Some D-Link (India) Limited (NSE:DLINKINDIA) shareholders may be a little concerned to see that the Non-Executive Director, Mukesh Lulla, recently sold a substantial ₹57m worth of stock at a price of ₹436 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.1%.

See our latest analysis for D-Link (India)

The Last 12 Months Of Insider Transactions At D-Link (India)

Notably, that recent sale by Mukesh Lulla is the biggest insider sale of D-Link (India) shares that we've seen in the last year. That means that even when the share price was below the current price of ₹467, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.1% of Mukesh Lulla's holding.

Mukesh Lulla sold a total of 210.92k shares over the year at an average price of ₹438. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of D-Link (India)

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. D-Link (India) insiders own about ₹2.3b worth of shares. That equates to 13% of the company. 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 D-Link (India) Insider Transactions Indicate?

An insider hasn't bought D-Link (India) 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. But since D-Link (India) is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - D-Link (India) has 2 warning signs we think you should be aware of.

But note: D-Link (India) 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.

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