Anyone interested in Reliance Industries Limited (NSE:RELIANCE) should probably be aware that a company insider, Nihar Jambusaria, recently divested ₹13m worth of shares in the company, at an average price of ₹1,284 each. Equally important, that sale actually reduced their holding by a full 66.7% which hardly makes us feel bullish about the stock.
See our latest analysis for Reliance Industries
The Last 12 Months Of Insider Transactions At Reliance Industries
The insider, Jaidev Dayal, made the biggest insider sale in the last 12 months. That single transaction was for ₹63m worth of shares at a price of ₹1,271 each. So we know that an insider sold shares at around the present share price of ₹1,247. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. 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.
In the last twelve months insiders purchased 41300 shares for ₹50m. But they sold 365k for ₹466m. Over the last year we saw more insider selling of Reliance Industries shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insider Ownership of Reliance Industries
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that Reliance Industries insiders own 1.0% of the company, worth about ₹74b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Reliance Industries Tell Us?
Insiders haven’t bought Reliance Industries stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. On the plus side, Reliance Industries makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Reliance Industries, you should check out this free report on analyst forecasts for the company.
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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