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Investors may wish to note that an insider of HEG Limited, Shubha Churiwal, recently netted ₹4.6m from selling stock, receiving an average price of ₹1,161. While that isn't a lot of money, it was a whopping 54% of their holding, so certainly isn't a good sign.
Check out our latest analysis for HEG
The Last 12 Months Of Insider Transactions At HEG
In fact, the recent sale by insider Shubha Churiwal was not their only sale of HEG shares this year. They previously made an even bigger sale of -₹4.6m worth of shares at a price of ₹1,161 per share. So we know that an insider sold shares at around the present share price of ₹1,026. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.
The chart below shows insider transactions (by 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!
I will like HEG better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of HEG
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. HEG insiders own about ₹1.3b worth of shares. That equates to 3.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About HEG Insiders?
An insider sold HEG shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since HEG is profitable and growing, we're not too worried by this. 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.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.