We wouldn’t blame Harita Seating Systems Limited (NSE:HARITASEAT) shareholders if they were a little worried about the fact that Martin Grammer, a company insider, recently netted about ₹559m selling shares at an average price of ₹514. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
The Last 12 Months Of Insider Transactions At Harita Seating Systems
Notably, that recent sale by Martin Grammer is the biggest insider sale of Harita Seating Systems shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even below the current price of ₹527. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was 100% of Martin Grammer’s holding.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership of Harita Seating Systems
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Harita Seating Systems insiders own 3.8% of the company, worth about ₹156m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Harita Seating Systems Insiders?
An insider hasn’t bought Harita Seating Systems stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. 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. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Harita Seating Systems (1 is potentially serious!) and we strongly recommend you look at these before investing.
Of course Harita Seating Systems may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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