Don't Ignore The Insider Selling In Sakar Healthcare

We'd be surprised if Sakar Healthcare Limited (NSE:SAKAR) shareholders haven't noticed that an insider, Ritaben Shah, recently sold ₹45m worth of stock at ₹990 per share. The eyebrow raising move amounted to a reduction of 18% in their holding.

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Sakar Healthcare Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the MD & Executive Director, Aarsh Shah, for ₹78m worth of shares, at about ₹976 per share. That means that even when the share price was below the current price of ₹1,016, an insider wanted to cash in some shares. 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. 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. We note that the biggest single sale was only 5.9% of Aarsh Shah's holding.

Insiders in Sakar Healthcare didn't buy any shares in 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!

View our latest analysis for Sakar Healthcare

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Does Sakar Healthcare Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Sakar Healthcare insiders own 52% of the company, worth about ₹12b. 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 Sakar Healthcare Insider Transactions Indicate?

Insiders haven't bought Sakar Healthcare stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Sakar Healthcare is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Sakar Healthcare that deserve your attention before buying any shares.

Of course Sakar Healthcare 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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