The of ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI), Rahul Bhagat, Just Bought 21% More Shares

Whilst it may not be a huge deal, we thought it was good to see that Rahul Bhagat, who is a company insider, recently bought ₹1.3m worth of stock, for ₹446 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 21%.

See our latest analysis for ICICI Prudential Life Insurance

The Last 12 Months Of Insider Transactions At ICICI Prudential Life Insurance

Over the last year, we can see that the biggest insider sale was by the Deputy MD & Whole-time Director, Puneet Nanda, for ₹12m worth of shares, at about ₹407 per share. That means that an insider was selling shares at slightly below the current price (₹496). 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. This single sale was just 11% of Puneet Nanda’s stake.

Happily, we note that in the last year insiders paid ₹1.8m for 4.45k shares. But they sold 287850 for ₹117m. In total, ICICI Prudential Life Insurance insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NSEI:ICICIPRULI Recent Insider Trading, February 9th 2020
NSEI:ICICIPRULI Recent Insider Trading, February 9th 2020

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Does ICICI Prudential Life Insurance Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.07% of ICICI Prudential Life Insurance shares, worth about ₹513m, according to our data. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!

What Might The Insider Transactions At ICICI Prudential Life Insurance Tell Us?

The stark truth for ICICI Prudential Life Insurance is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in ICICI Prudential Life Insurance, you should check out this free report on analyst forecasts for the company.

Of course ICICI Prudential Life Insurance may not be the best stock to buy. So you may wish to see this free collection of high quality 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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