Shubhlaxmi Jewel Art's Stock Sinks To ₹22.80, But Insiders Sold Even Lower

Simply Wall St · 03/12 00:00

Shubhlaxmi Jewel Art Limited's (NSE:SHUBHLAXMI) stock price has dropped 14% in the previous week, but insiders who sold ₹26m in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹38.30 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Shubhlaxmi Jewel Art

The Last 12 Months Of Insider Transactions At Shubhlaxmi Jewel Art

In the last twelve months, the biggest single sale by an insider was when the insider, Soham Chauhan, sold ₹4.6m worth of shares at a price of ₹42.46 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹22.80). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Soham Chauhan.

Soham Chauhan divested 687.00k shares over the last 12 months at an average price of ₹38.30. 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!

insider-trading-volume
NSEI:SHUBHLAXMI Insider Trading Volume March 12th 2025

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Shubhlaxmi Jewel Art Have Sold Stock Recently

The last quarter saw substantial insider selling of Shubhlaxmi Jewel Art shares. Specifically, insider Soham Chauhan ditched ₹8.0m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Shubhlaxmi Jewel Art Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Shubhlaxmi Jewel Art insiders own 64% of the company, currently worth about ₹156m based on the recent share price. 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 Does This Data Suggest About Shubhlaxmi Jewel Art Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Shubhlaxmi Jewel Art (3 are potentially serious!) that we believe deserve your full attention.

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 of direct interests only, but not derivative transactions or indirect interests.