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Investors may wish to note that an insider of Dr. Reddy's Laboratories Limited, A. Karunakar, recently netted ₹5.6m from selling stock, receiving an average price of ₹2,809. While that isn't a lot of money, it was a whopping 74% of their holding, so certainly isn't a good sign.
Check out our latest analysis for Dr. Reddy's Laboratories
The Last 12 Months Of Insider Transactions At Dr. Reddy's Laboratories
Notably, that recent sale by insider A. Karunakar was not the only time they sold Dr. Reddy's Laboratories shares this year. They previously made an even bigger sale of -₹5.6m worth of shares at a price of ₹2,809 per share. So we know that an insider sold shares at around the present share price of ₹2,775. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year we saw more insider selling of Dr. Reddy's Laboratories shares, than buying. 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 Dr. Reddy's Laboratories Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dr. Reddy's Laboratories insiders own 2.1% of the company, currently worth about ₹9.5b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Dr. Reddy's Laboratories Insiders?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Dr. Reddy's Laboratories 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. Of course, the future is what matters most. So if you are interested in Dr. Reddy's Laboratories, you should check out this free report on analyst forecasts for the company.