Don't Ignore The Fact That This Insider Just Sold Some Shares In Indiabulls Ventures Limited (NSE:IBVENTURES)

We'd be surprised if Indiabulls Ventures Limited (NSE:IBVENTURES) shareholders haven't noticed that an insider, Sachin Chaudhary, recently sold ₹13m worth of stock at ₹222 per share. The eyebrow raising move amounted to a reduction of 14% in their holding.

Check out our latest analysis for Indiabulls Ventures

Indiabulls Ventures Insider Transactions Over The Last Year

In fact, the recent sale by Sachin Chaudhary was the biggest sale of Indiabulls Ventures shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹226. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Sachin Chaudhary's holding.

In total, Indiabulls Ventures 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 Indiabulls Ventures better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Indiabulls Ventures Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Indiabulls Ventures insiders own 10% of the company, worth about ₹11b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Indiabulls Ventures 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 4 warning signs for Indiabulls Ventures that deserve your attention before buying any shares.

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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This article by Simply Wall St is general in nature. 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.
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