One Ion Exchange (India) Insider Has Reduced Their Stake
Viewing insider transactions for Ion Exchange (India) Limited's (NSE:IONEXCHANG ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Ion Exchange (India)
The Non-Executive & Non-Independent Vice Chairman, Dinesh Sharma, made the biggest insider sale in the last 12 months. That single transaction was for ₹101m worth of shares at a price of ₹327 each. That means that an insider was selling shares at slightly below the current price (₹338). 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 4.8% of Dinesh Sharma's holding. Dinesh Sharma was the only individual insider to sell shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Ion Exchange (India)
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
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's great to see that Ion Exchange (India) insiders own 27% of the company, worth about ₹11b. 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 Ion Exchange (India) Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Ion Exchange (India) shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Ion Exchange (India) insider transactions don't fill us with confidence. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Ion Exchange (India) has 2 warning signs we think you should be aware of.
Of course Ion Exchange (India) 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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