Have ICICI Bank Limited (NSE:ICICIBANK) Insiders Been Selling Their Stock?

Some ICICI Bank Limited (NSE:ICICIBANK) shareholders may be a little concerned to see that insider Bhargav Dasgupta recently sold a substantial ₹278m worth of stock at a price of ₹618 per share. That diminished their holding by a very significant 94%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for ICICI Bank

The Last 12 Months Of Insider Transactions At ICICI Bank

In fact, the recent sale by Bhargav Dasgupta was the biggest sale of ICICI Bank shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹608. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 twelve months insiders purchased 17.45k shares for ₹5.3m. But they sold 9.47m shares for ₹5.1b. All up, insiders sold more shares in ICICI Bank than they bought, over the last year. The average sell price was around ₹542. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

I will like ICICI Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does ICICI Bank 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. ICICI Bank insiders own about ₹9.0b worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The ICICI Bank Insider Transactions Indicate?

Insiders haven't bought ICICI Bank stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that ICICI Bank is growing earnings. 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 assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of ICICI Bank.

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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