Investors may wish to note that an insider of Divi’s Laboratories Limited, S. Rao, recently netted ₹7.3m from selling stock, receiving an average price of ₹3,510. However we note that the sale only shrunk their holding by 3.3%.

Check out our latest analysis for Divi’s Laboratories

The Last 12 Months Of Insider Transactions At Divi’s Laboratories

In the last twelve months, the biggest single sale by an insider was when the insider, Nimmagadda Anirudh, sold ₹65m worth of shares at a price of ₹4,366 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹3,528. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 2.22k shares worth ₹10m. But they sold 55.72k shares for ₹245m. In total, Divi’s Laboratories insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and 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!

I will like Divi’s Laboratories 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 Divi’s Laboratories

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Divi’s Laboratories insiders own 49% of the company, currently worth about ₹462b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Divi’s Laboratories Insider Transactions Indicate?

Insiders sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. But since Divi’s Laboratories is profitable and growing, we’re not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To help with this, we’ve discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Divi’s Laboratories.

But note: Divi’s Laboratories 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.