For SS Innovations International Insiders, Selling US$35m Of Shares Was A Smart Move

While SS Innovations International, Inc. (NASDAQ:SSII) shareholders have had a good week with the stock up 11%, they shouldn't let their guards down. The fact that insiders chose to dispose of US$35m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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SS Innovations International Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Sudhir Srivastava, sold US$10m worth of shares at a price of US$1.37 per share. That means that an insider was selling shares at slightly below the current price (US$5.33). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 6.3% of Sudhir Srivastava's holding. The only individual insider seller over the last year was Sudhir Srivastava.

Happily, we note that in the last year insiders paid US$19m for 13.53m shares. But insiders sold 25.37m shares worth US$35m. Sudhir Srivastava sold a total of 25.37m shares over the year at an average price of US$1.38. 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!

Check out our latest analysis for SS Innovations International

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Are SS Innovations International Insiders Buying Or Selling?

COO of Americas & Director Barry Cohen bought just US$3.8k worth of shares in that time. That's not much at all. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Insider Ownership

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. SS Innovations International insiders own about US$699m worth of shares (which is 76% of the company). 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 SS Innovations International Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. While we gain confidence from high insider ownership of SS Innovations International, we can't say the same about their transactions in the last year, in the absence of further purchases. 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. In terms of investment risks, we've identified 3 warning signs with SS Innovations International and understanding them should be part of your investment process.

Of course SS Innovations International 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.