This Insider Has Just Sold Shares In Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON)

Anyone interested in Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) should probably be aware that a company insider, Sachin Phartiyal, recently divested ₹27m worth of shares in the company, at an average price of ₹380 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

View our latest analysis for Crompton Greaves Consumer Electricals

The Last 12 Months Of Insider Transactions At Crompton Greaves Consumer Electricals

The MD & Executive Director, Shantanu Khosla, made the biggest insider sale in the last 12 months. That single transaction was for ₹495m worth of shares at a price of ₹368 each. That means that even when the share price was below the current price of ₹396, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 44% of Shantanu Khosla’s holding.

Insiders in Crompton Greaves Consumer Electricals 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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. Insiders own 0.4% of Crompton Greaves Consumer Electricals shares, worth about ₹881m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Crompton Greaves Consumer Electricals Insiders?

Insiders haven’t bought Crompton Greaves Consumer Electricals stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. 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. In terms of investment risks, we’ve identified 2 warning signs with Crompton Greaves Consumer Electricals and understanding these should be part of your investment process.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.