Have insiders sold Praj Industries shares recently?

We would be surprised if Praj Industries Limited (NSE:PRAJIND) Shareholders haven’t noticed that an insider, Atul Mulay, recently sold ₹19 million worth of shares at ₹636 per share. That sale was 47% of their holdings, so we’re raising our eyebrows.

Check out our latest analysis for Praj Industries

The last twelve months of insider transactions at Praj Industries

In the last twelve months, the largest sale by an insider took place when the CFO, Director of Resources and Executive Director, Sachin Raole, sold ₹41 million worth of shares at a price of ₹586 per share. That means an insider sold shares at slightly below the current price (₹700). As a general rule, we find it discouraging when insiders sell below the current price, as it suggests they were happy with a lower valuation. While insider selling isn’t a positive sign, we’re not sure it means insiders think the stock is fully valued. So it’s just a weak sign. We note that the largest single sale was for just 48% of Sachin Raole’s stake.

Praj Industries insiders haven’t bought any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, click on the graph below!

insider trading volume
NSEI:PRAJIND Insider Trading Volume June 16, 2024

If you like buying stocks that insiders are buying, rather than selling, you might like this free list of companies. (Hint: most fly under the radar).

Does Praj Industries have high insider ownership?

Another way to test the alignment between a company’s leaders and other shareholders is to look at how many shares they own. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company for the long term. Praj Industries insiders own 29% of the company, which is currently worth around ₹37 billion based on the recent share price. This type of significant insider ownership usually increases the likelihood that the company is run in the interests of all shareholders.

So what do Praj Industries’ insider transactions indicate?

An insider has not bought any Praj Industries shares in the past three months, but there has been some selling. Looking at the last twelve months, our data shows no insider purchasing. On the plus side, Praj Industries is making money and growing profits. It’s good to see high insider ownership, but insider trading makes us cautious. So these insider transactions can help us build a thesis on the stock, but it’s also worth knowing what risks this company faces. Example: We’ve seen it 3 warning signs for Praj Industries things to keep in mind, and one of them is concerning.

Naturally, You might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. Currently, we only consider open market transactions and private dispositions involving direct interests, but not derivative transactions or indirect interests.

Valuation is complex, but we help make it simple.

Invent or Praj Industries may be over or undervalued if you look at our comprehensive analysis, including fair value estimates, risks and cautions, dividends, insider transactions and financial health.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.

Valuation is complex, but we help make it simple.

Invent or Praj Industries may be over or undervalued if you look at our comprehensive analysis, including fair value estimates, risks and cautions, dividends, insider transactions and financial health.

View the Free Analysis

Do you have feedback on this article? Worried about the content? Please contact us directly. You can also send an email to [email protected]