Investors may wish to note that an insider of Coromandel International Limited, T. Raghavan, recently netted ₹1.4m from selling stock, receiving an average price of ₹476. It might not be a huge sale, but it did reduce their holding size 34%, hardly encouraging.
The Last 12 Months Of Insider Transactions At Coromandel International
The insider, Meenakshi Murugappan, made the biggest insider sale in the last 12 months. That single transaction was for ₹170m worth of shares at a price of ₹450 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹477. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 99% of Meenakshi Murugappan's stake.
Over the last year, we note insiders sold 748900 shares worth ₹337m. Insiders in Coromandel International didn't buy any shares in the last year. You can see the insider transactions (by 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!
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Does Coromandel International 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Coromandel International insiders own 1.0% of the company, worth about ₹1.3b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Coromandel International Tell Us?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Coromandel International is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Coromandel International.
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.
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