Have any insiders of Supreme Engineering Limited (NSE: SUPREMEENG) sold their shares?

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We would be surprised if Supreme Engineering Limited (NSE: SUPREMEENG) Shareholders failed to notice that Chairman and CEO Sanjay Chowdhri recently sold 18 million yen of shares at 19.22 yen per share. This sale represented 22% of their participation, so that raises our eyebrows.

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Supreme Engineering Insider Trading in the Past Year

Notably, this recent sale by Chairman and CEO Sanjay Chowdhri was not the only time they have sold shares of Supreme Engineering this year. Previously, they had made an even larger sale of -24 million yen of shares at a price of 22.08 yen per share. So what is clear is that an insider has seen fit to sell around the current price of 20.10. While we generally don’t like to see insider sales, it is more of a concern whether the sales come at a lower price. We note that this sale took place at roughly the current price, so this is not a major concern, although it is not a good sign.

Sanjay Chowdhri sold a total of 2.61 million shares during the year at an average price of 21.96. The chart below shows insider trading (by businesses and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!

NSEI: SUPREMEENG Insider trading volume December 30, 2021

If you are like me then you not want to miss it free list of growing companies that insiders are buying.

Insider ownership

Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. I think it’s a good sign if the insiders own a significant number of shares in the company. Supreme Engineering insiders own around 386 million yen of shares (or 77% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

So what does this data suggest about Supreme Engineering Insiders?

An insider hasn’t bought Supreme Engineering shares in the past three months, but there have been some sales. Looking at the past twelve months, our data shows no insider buying. It’s good to see a high number of Insider Owners, but insider selling leaves us cautious. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this business faces. Concrete example: we have spotted 5 warning signs for Supreme Engineering you need to be aware of this, and 3 of them make us uncomfortable.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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