This Insider Has Just Sold Shares In IndusInd Bank Limited (NSE:INDUSINDBK)

By
Simply Wall St
Published
November 23, 2021
NSEI:INDUSINDBK
Source: Shutterstock

Investors may wish to note that an insider of IndusInd Bank Limited, Abhijit Talatule, recently netted ₹5.1m from selling stock, receiving an average price of ₹1,029. It might not be a huge sale, but it did reduce their holding size 45%, hardly encouraging.

Check out our latest analysis for IndusInd Bank

IndusInd Bank Insider Transactions Over The Last Year

The insider, Ramachandra Madapati, made the biggest insider sale in the last 12 months. That single transaction was for ₹57m worth of shares at a price of ₹947 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹981. 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 36% of Ramachandra Madapati's holding.

IndusInd Bank insiders didn't buy any shares 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!

insider-trading-volume
NSEI:INDUSINDBK Insider Trading Volume November 24th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of IndusInd Bank

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IndusInd Bank insiders own about ₹4.1b worth of shares. That equates to 0.5% of the company. 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 IndusInd Bank Insider Transactions Indicate?

Insiders sold IndusInd Bank shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since IndusInd Bank is profitable and growing, we're not too worried by this. 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 IndusInd Bank. Our analysis shows 5 warning signs for IndusInd Bank (1 can't be ignored!) and we strongly recommend you look at them before investing.

But note: IndusInd Bank may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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