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

Investors may wish to note that an insider of IDFC First Bank Limited, Abhijit Kamalapurkar, recently netted ₹2.0m from selling stock, receiving an average price of ₹32.25. That might not be a huge sum but it was 68% of their personal holding, so we find it a little discouraging.

View our latest analysis for IDFC First Bank

The Last 12 Months Of Insider Transactions At IDFC First Bank

Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Vembu Vaidyanathan, for ₹582m worth of shares, at about ₹21.12 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹33.70. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 39% of Vembu Vaidyanathan's holding.

In the last twelve months insiders purchased 318.00k shares for ₹11m. But insiders sold 46.07m shares worth ₹975m. All up, insiders sold more shares in IDFC First Bank 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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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that IDFC First Bank insiders own 0.8% of the company, worth about ₹1.5b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The IDFC First Bank Insider Transactions Indicate?

An insider sold IDFC First Bank shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for IDFC First Bank (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

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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