Insiders who sold Dixon Technologies (India) Limited (NSE:DIXON) earlier this year probably made the right call as market cap dropped by ₹7.5b

Over the past year, insiders sold ₹17m worth of Dixon Technologies (India) Limited (NSE:DIXON) stock at an average price of ₹4,270 per share allowing them to get the most out of their money. The company’s market worth decreased by ₹7.5b over the past week after the stock price dropped 3.3%, although insiders were able to minimize their losses

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.

See our latest analysis for Dixon Technologies (India)

The Last 12 Months Of Insider Transactions At Dixon Technologies (India)

In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Saurabh Gupta, sold ₹6.0m worth of shares at a price of ₹4,183 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹3,686. So it is hard to draw any strong conclusion from it.

Insiders in Dixon Technologies (India) didn’t buy any shares in the last year. 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!

I will like Dixon Technologies (India) 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 Dixon Technologies (India) Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Dixon Technologies (India) insiders own 49% of the company, worth about ₹108b. 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 Dixon Technologies (India) Insiders?

It doesn’t really mean much that no insider has traded Dixon Technologies (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 Dixon Technologies (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. You’d be interested to know, that we found 1 warning sign for Dixon Technologies (India) and we suggest you have a look.

But note: Dixon Technologies (India) 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.