Have Insiders Sold IDFC First Bank Limited (NSE:IDFCFIRSTB) Shares Recently?

We note that a IDFC First Bank Limited (NSE:IDFCFIRSTB) insider, Nilesh Doshi, recently sold ₹4.8m worth of stock for ₹36.61 per share. It might not be a huge sale, but it did reduce their holding size 39%, hardly encouraging.

Check out our latest analysis for IDFC First Bank

The Last 12 Months Of Insider Transactions At IDFC First Bank

In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Director, Vembu Vaidyanathan, sold ₹582m worth of shares at a price of ₹21.12 per share. That means that even when the share price was below the current price of ₹37.10, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 39% of Vembu Vaidyanathan's holding.

Happily, we note that in the last year insiders paid ₹11m for 318.00k shares. But insiders sold 46.11m shares worth ₹976m. In total, IDFC First Bank insiders sold more than they bought over the last year. You can see the insider transactions (by companies and 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!

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Does IDFC First Bank Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. IDFC First Bank insiders own about ₹1.7b worth of shares. That equates to 0.8% 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.

What Might The Insider Transactions At IDFC First Bank Tell Us?

Insiders haven't bought IDFC First Bank stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that IDFC First Bank is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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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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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