[ad_1]
We note that the Rupa & Company Limited (NSE:RUPA) Executive Chairman & Whole-Time Director, Prahlad Agarwala, recently sold ₹729k worth of stock for ₹1.00 per share. On the bright side, that’s just a small sale and only reduced their holding by 3.6%.
View our latest analysis for Rupa
The Last 12 Months Of Insider Transactions At Rupa
Notably, that recent sale by Prahlad Agarwala is the biggest insider sale of Rupa shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (₹308). 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. 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 just 3.6% of Prahlad Agarwala’s stake.
In the last twelve months insiders purchased 375.06k shares for ₹375k. But they sold 728.68k shares for ₹729k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Rupa better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Rupa Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Rupa insiders own 44% of the company, worth about ₹11b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Rupa Tell Us?
The stark truth for Rupa is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But since Rupa is profitable and growing, we’re not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. 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. You’d be interested to know, that we found 2 warning signs for Rupa and we suggest you have a look.
But note: Rupa may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
Promoted
If you’re looking to trade Rupa, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
[ad_2]
Source link
