Have Insiders Sold Axis Bank Limited (NSE:AXISBANK) Shares Recently?

By
Simply Wall St
Published
February 06, 2021

We'd be surprised if Axis Bank Limited (NSE:AXISBANK) shareholders haven't noticed that the Executive Director of Wholesale Banking & Executive Director, Rajiv Prattipati, recently sold ₹23m worth of stock at ₹665 per share. On the bright side, that sale was only 8.9% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Axis Bank

Axis Bank Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jairam Sridharan, for ₹121m worth of shares, at about ₹737 per share. That means that an insider was selling shares at around the current price of ₹720. 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.

Insiders in Axis Bank didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:AXISBANK Insider Trading Volume February 7th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

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. Axis Bank insiders own about ₹5.2b worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Axis Bank Insiders?

Insiders haven't bought Axis Bank stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Axis Bank. When we did our research, we found 4 warning signs for Axis Bank (1 is a bit concerning!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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