Don't Ignore The Fact That This Insider Just Sold Some Shares In Mahindra Logistics Limited (NSE:MAHLOG)

Investors may wish to note that an insider of Mahindra Logistics Limited, Shrikant Nikam, recently netted ₹4.6m from selling stock, receiving an average price of ₹463. It might not be a huge sale, but it did reduce their holding size 28%, hardly encouraging.

View our latest analysis for Mahindra Logistics

The Last 12 Months Of Insider Transactions At Mahindra Logistics

Notably, that recent sale by Shrikant Nikam is the biggest insider sale of Mahindra Logistics shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹501). 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. 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 28%of Shrikant Nikam's holding.

Mahindra Logistics 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Mahindra 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.

Does Mahindra Logistics Boast High 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. We usually like to see fairly high levels of insider ownership. Mahindra Logistics insiders own about ₹894m worth of shares. That equates to 2.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Mahindra Logistics Insider Transactions Indicate?

Insiders sold Mahindra Logistics 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. Case in point: We've spotted 3 warning signs for Mahindra Logistics you should be aware of.

Of course Mahindra Logistics 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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