Consumer Durables News

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 ₹9.5m worth of shares in the company, at an average price of ₹380 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn’t exactly instill confidence.

View our latest analysis for Crompton Greaves Consumer Electricals

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

In the last twelve months, the biggest single sale by an insider was when the MD & Executive Director, Shantanu Khosla, sold ₹41m worth of shares at a price of ₹405 per share. So we know that an insider sold shares at around the present share price of ₹373. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

In the last year Crompton Greaves Consumer Electricals insiders didn’t buy any company stock. 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!

NSEI:CROMPTON Insider Trading Volume April 6th 2021

I will like Crompton Greaves Consumer Electricals 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 Crompton Greaves Consumer Electricals 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. Our information indicates that Crompton Greaves Consumer Electricals insiders own about ₹72m worth of shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Crompton Greaves Consumer Electricals Tell Us?

Insiders haven’t bought Crompton Greaves Consumer Electricals stock in the last three months, but there was some selling. And even if we look at the last year, we didn’t see any purchases. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We’ve spotted 2 warning signs for Crompton Greaves Consumer Electricals you should be aware of.

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. 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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