Jet Freight Logistics Limited (NSE:JETFREIGHT) insiders who sold ₹65m worth of stock earlier this year are probably glad they did so as market cap slides to ₹487m

Insiders seem to have made the most of their holdings by selling ₹65m worth of Jet Freight Logistics Limited (NSE:JETFREIGHT) stock at an average sell price of ₹21.60 during the past year. The company's market valuation decreased by ₹70m after the stock price dropped 13% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Jet Freight Logistics

Jet Freight Logistics Insider Transactions Over The Last Year

The Non- Executive Director, Agnes Theknath, made the biggest insider sale in the last 12 months. That single transaction was for ₹32m worth of shares at a price of ₹24.01 each. 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 ₹10.50. So it is hard to draw any strong conclusion from it. Agnes Theknath was the only individual insider to sell over the last year.

Agnes Theknath sold a total of 3.02m shares over the year at an average price of ₹21.60. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Jet Freight Logistics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. Jet Freight Logistics insiders own 58% of the company, currently worth about ₹284m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Jet Freight Logistics Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Jet Freight Logistics insider transactions don't fill us with confidence. 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. To that end, you should learn about the 6 warning signs we've spotted with Jet Freight Logistics (including 5 which shouldn'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.

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