Don't Ignore The Fact That This Insider Just Sold Some Shares In SBI Cards and Payment Services Limited (NSE:SBICARD)

We note that a SBI Cards and Payment Services Limited (NSE:SBICARD) insider, Chander Sharma, recently sold ₹6.0m worth of stock for ₹815 per share. That might not be a huge sum but it was 99% of their personal holding, so we find it a little discouraging.

See our latest analysis for SBI Cards and Payment Services

SBI Cards and Payment Services Insider Transactions Over The Last Year

In fact, the recent sale by Chander Sharma was the biggest sale of SBI Cards and Payment Services shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of ₹807. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year SBI Cards and Payment Services insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like SBI Cards and Payment Services 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.06% of SBI Cards and Payment Services shares, worth about ₹424m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The SBI Cards and Payment Services Insider Transactions Indicate?

Insiders sold SBI Cards and Payment Services shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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 that end, you should learn about the 2 warning signs we've spotted with SBI Cards and Payment Services (including 1 which makes us a bit uncomfortable).

But note: SBI Cards and Payment Services 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. 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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