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We’d be surprised if V-Mart Retail Limited (NSE:VMART) shareholders haven’t noticed that the President of Sourcing & Procurement, Rajan Sharma, recently sold ₹12m worth of stock at ₹2,787 per share. In particular, we note that the sale equated to a 63% reduction in their position size, which doesn’t exactly instill confidence.
Check out our latest analysis for V-Mart Retail
The Last 12 Months Of Insider Transactions At V-Mart Retail
The insider, Hemanth Agarwal, made the biggest insider sale in the last 12 months. That single transaction was for ₹66m worth of shares at a price of ₹2,048 each. That means that even when the share price was below the current price of ₹2,800, an insider wanted to cash in some shares. 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. 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. It is worth noting that this sale was only 15% of Hemanth Agarwal’s holding. Notably Hemanth Agarwal was also the biggest buyer, having purchased ₹129k worth of shares.
Over the last year we saw more insider selling of V-Mart Retail shares, than buying. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of V-Mart Retail
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. V-Mart Retail insiders own about ₹4.9b worth of shares. That equates to 8.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At V-Mart Retail Tell Us?
An insider sold stock recently, but they haven’t been buying. And our longer term analysis of insider transactions didn’t bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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’ve found that V-Mart Retail has 3 warning signs (1 shouldn’t be ignored!) that deserve your attention before going any further with your analysis.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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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.
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