The Vice Chairman of Sterlite Technologies Limited (NSE:STLTECH), Pravin Agarwal, Just Sold 25% Of Their Holding

We wouldn't blame Sterlite Technologies Limited (NSE:STLTECH) shareholders if they were a little worried about the fact that Pravin Agarwal, the Vice Chairman recently netted about ₹45m selling shares at an average price of ₹150. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

View our latest analysis for Sterlite Technologies

The Last 12 Months Of Insider Transactions At Sterlite Technologies

Notably, that recent sale by Pravin Agarwal is the biggest insider sale of Sterlite Technologies shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹146. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Sterlite Technologies insiders didn't buy any shares 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!

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Does Sterlite 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. Sterlite Technologies insiders own about ₹1.9b worth of shares. That equates to 3.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Sterlite Technologies Insider Transactions Indicate?

Insiders sold Sterlite Technologies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Sterlite Technologies has 5 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Sterlite 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, but not derivative transactions.

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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.
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