Over the past year, insiders sold ₹4.3m worth of Shaily Engineering Plastics Limited (NSE:SHAILY) stock at an average price of ₹1,832 per share allowing them to get the most out of their money. The company's market worth decreased by ₹3.1b over the past week after the stock price dropped 17%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Shaily Engineering Plastics

In the last twelve months, the biggest single sale by an insider was when the insider, Ramesh Shah, sold ₹4.3m worth of shares at a price of ₹1,832 per share. So we know that an insider sold shares at around the present share price of ₹1,699. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 only individual insider seller over the last year was Ramesh Shah.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Shaily Engineering Plastics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Shaily Engineering Plastics insiders own 57% of the company, worth about ₹8.9b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

The fact that there have been no Shaily Engineering Plastics insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Shaily Engineering Plastics insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shaily Engineering Plastics. Our analysis shows 2 warning signs for Shaily Engineering Plastics (1 is significant!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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