We'd be surprised if Sakar Healthcare Limited (NSE:SAKAR) shareholders haven't noticed that an insider, Ayushi Shah, recently sold ₹18m worth of stock at ₹890 per share. In particular, we note that the sale equated to a 83% reduction in their position size, which doesn't exactly instill confidence.
Sakar Healthcare Insider Transactions Over The Last Year
Notably, that recent sale by Ayushi Shah is the biggest insider sale of Sakar Healthcare shares that we've seen in the last year. That means that an insider was selling shares at below the current price (₹891). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 83% of Ayushi Shah's holding.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Sakar Healthcare
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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sakar Healthcare insiders own 52% of the company, currently worth about ₹10b 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 Do The Sakar Healthcare Insider Transactions Indicate?
An insider hasn't bought Sakar Healthcare stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Sakar Healthcare is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Sakar Healthcare and understanding these should be part of your investment process.
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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.