99% Of This Samvardhana Motherson International Insider's Holdings Were Sold

Simply Wall St · 10/18 09:42

Viewing insider transactions for Samvardhana Motherson International Limited's (NSE:MOTHERSON ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Samvardhana Motherson International

Samvardhana Motherson International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Rajat Jain, for ₹100m worth of shares, at about ₹93.05 per share. That means that an insider was selling shares at slightly below the current price (₹203). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. This single sale was 99% of Rajat Jain's stake. The only individual insider seller over the last year was Rajat Jain.

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!

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NSEI:MOTHERSON Insider Trading Volume October 18th 2024

I will like Samvardhana Motherson International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Samvardhana Motherson International Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Samvardhana Motherson International insiders own 14% of the company, worth about ₹194b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Samvardhana Motherson International Insider Transactions Indicate?

The fact that there have been no Samvardhana Motherson International insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Samvardhana Motherson International insider transactions don't fill us with confidence. While it's good to be aware of 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. At Simply Wall St, we found 2 warning signs for Samvardhana Motherson International that deserve your attention before buying any shares.

But note: Samvardhana Motherson International 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 of direct interests only, but not derivative transactions or indirect interests.