Insiders at Shanti Educational Initiatives Limited (NSE:SEIL) sold ₹1.6b worth of stock at an average price of ₹131 a share over the past year, making the most of their investment. The company’s market cap plunged by ₹3.6b after price dropped by 12% last week but insiders were able to limit their loss to an extent.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Shanti Educational Initiatives Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Jaiprakash Chiripal, sold ₹226m worth of shares at a price of ₹189 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹160). So it may not shed much light on insider confidence at current levels.
Shanti Educational Initiatives insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Shanti Educational Initiatives
I will like Shanti Educational Initiatives better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. Shanti Educational Initiatives insiders own about ₹13b worth of shares (which is 49% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Shanti Educational Initiatives Tell Us?
It doesn't really mean much that no insider has traded Shanti Educational Initiatives shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Shanti Educational Initiatives insider transactions don't fill us with confidence. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Shanti Educational Initiatives 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 of direct interests only, but not derivative transactions or indirect interests.
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