Anyone interested in Blue Star Limited (NSE:BLUESTARCO) should probably be aware that a company insider, R. Aravindan, recently divested ₹7.9m worth of shares in the company, at an average price of ₹789 each. The eyebrow raising move amounted to a reduction of 32% in their holding.
Blue Star Insider Transactions Over The Last Year
In fact, the recent sale by insider R. Aravindan was not their only sale of Blue Star shares this year. Earlier in the year, they fetched ₹659 per share in a -₹10.1m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹795. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 23% of R. Aravindan's stake.
We note that in the last year insiders divested 105509 shares for a total of ₹43m. Blue Star insiders didn't buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Blue Star Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Blue Star insiders own 15% of the company, currently worth about ₹11b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Blue Star Insiders?
An insider sold Blue Star shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Blue Star is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Blue Star.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.