Anyone interested in Mold-Tek Packaging Limited (NSE:MOLDTKPAC) should probably be aware that a company insider, Adivishnu Sundeep, recently divested ₹13m worth of shares in the company, at an average price of ₹300 each. The eyebrow raising move amounted to a reduction of 16% in their holding.
The Last 12 Months Of Insider Transactions At Mold-Tek Packaging
In fact, the recent sale by Adivishnu Sundeep was the biggest sale of Mold-Tek Packaging shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹297. 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.
All up, insiders sold more shares in Mold-Tek Packaging than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Mold-Tek Packaging Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Mold-Tek Packaging insiders own 42% of the company, currently worth about ₹3.5b 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 Mold-Tek Packaging Tell Us?
The stark truth for Mold-Tek Packaging is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Mold-Tek Packaging makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in Mold-Tek Packaging, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek 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. We currently account for open market transactions and private dispositions, but not derivative transactions.
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