Have The Federal Bank Limited (NSE:FEDERALBNK) Insiders Been Selling Their Stock?

We note that a The Federal Bank Limited (NSE:FEDERALBNK) insider, R Kumar, recently sold ₹890k worth of stock for ₹59.33 per share. While that isn't a lot of money, it was a substantial 80% of their holding, so certainly isn't a good sign.

View our latest analysis for Federal Bank

Federal Bank Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Shyam Srinivasan, for ₹357m worth of shares, at about ₹64.93 per share. So we know that an insider sold shares at around the present share price of ₹58.50. While insider selling is a negative, to us, it is more negative if the shares are sold 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 Federal Bank 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!

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

Insider Ownership of Federal Bank

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Federal Bank insiders own 6.6% of the company, currently worth about ₹7.7b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Federal Bank Insiders?

An insider sold Federal Bank shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Federal Bank has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course Federal Bank 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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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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