We note that a Shreyas Shipping and Logistics Limited (NSE:SHREYAS) insider, Rakesh Raje, recently sold ₹2.1m worth of stock for ₹360 per share. It wasn’t a huge sale, but it did reduce their holding by 18%. This does not instill confidence.
Shreyas Shipping and Logistics Insider Transactions Over The Last Year
Notably, that recent sale by Rakesh Raje is the biggest insider sale of Shreyas Shipping and Logistics shares that we’ve seen in the last year. That means that an insider was selling shares at around the current price of ₹354. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Shreyas Shipping and Logistics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Shreyas Shipping and Logistics
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Shreyas Shipping and Logistics insiders own 17% of the company, worth about ₹1.3b. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Shreyas Shipping and Logistics Tell Us?
The insider sales have outweighed the insider buying, at Shreyas Shipping and Logistics, in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since Shreyas Shipping and Logistics is profitable and growing, we’re not too worried by this. 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. 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. When we did our research, we found 2 warning signs for Shreyas Shipping and Logistics (1 can’t be ignored!) 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, but not derivative transactions.
Source : simplywall