Investors may wish to note that an insider of Limited Mobile Route, Sharad Thukral, recently raised 6.8 million yen by selling shares, receiving an average price of 1,701 yen. It might not be a huge sale, but it has reduced their holding size by 20%, which is hardly encouraging.

See our latest review for Route Mobile

The last 12 months of insider trading at Route Mobile

Over the past year, we can see that the biggest insider sale came from insider Priyanka Jaiswal for 33 million yen of shares, at around 1,116 yen per share. This means that an insider was selling shares at a price slightly lower than the current price (₹ 1,715). Generally, we find it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. Please note, however, that sellers can have a variety of reasons for selling, so we are not sure what they think about the stock price. It should be noted that this sale concerned 100% of Priyanka Jaiswal’s stake.

In total, Route Mobile insiders have sold more than they bought over the past year. You can see insider trading (by companies and individuals) over the past year shown in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!

NSEI: ROUTE Insider trading volume May 30, 2021

If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).

Does Route Mobile pride itself on high insider ownership?

I like to watch how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Route Mobile insiders own 69% of the company, currently worth around 68 billion yen based on the recent share price. This type of large insider ownership usually increases the chances that the business will be run in the best interests of all shareholders.

What might insider trading at Route Mobile tell us?

Unfortunately, there have been more insider sales of Route Mobile shares than purchases in the past three months. Despite some insider buying, the longer-term picture doesn’t make us much more positive. But it’s good to see Route Mobile increasing its revenue. Although insiders own many shares of the company (which is good), our analysis of their transactions does not give us confidence in the company. In addition to knowing the current insider transactions, it is beneficial to identify the risks that Route Mobile faces. During our analysis, we found that Route Mobile has 1 warning sign and it would be unwise to ignore it.

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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.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares 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 the mentioned stocks.
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