We note that the Godrej Agrovet Limited (NSE:GODREJAGRO) Head of Central Buying Organisation, Vinay Mishra, recently sold ₹2.5m worth of stock for ₹475 per share. On the bright side, that's just a small sale and only reduced their holding by 5.7%.
The Last 12 Months Of Insider Transactions At Godrej Agrovet
The insider, Pramod Sahu, made the biggest insider sale in the last 12 months. That single transaction was for ₹6.8m worth of shares at a price of ₹527 each. So we know that an insider sold shares at around the present share price of ₹497. 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.
Over the last year, we note insiders sold 125235 shares worth ₹63m. Insiders in Godrej Agrovet didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by 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!
I will like Godrej Agrovet better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Godrej Agrovet insiders own 9.8% of the company, currently worth about ₹8.8b 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.
What Might The Insider Transactions At Godrej Agrovet Tell Us?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Godrej Agrovet makes money, and is growing profits. 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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Godrej Agrovet 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, but not derivative transactions.
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