In This Article:
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Grasim Industries Limited (NSE:GRASIM).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
See our latest analysis for Grasim Industries
The Last 12 Months Of Insider Transactions At Grasim Industries
The insider, Krishna Maheshwari, made the biggest insider sale in the last 12 months. That single transaction was for ₹11m worth of shares at a price of ₹723 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹750. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 only 9.9% of Krishna Maheshwari's holding. Krishna Maheshwari was the only individual insider to sell over the last year.
Krishna Maheshwari sold a total of 27000 shares over the year at an average price of ₹773. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Grasim Industries Have Sold Stock Recently
The last quarter saw substantial insider selling of Grasim Industries shares. In total, insider Krishna Maheshwari dumped ₹21m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.