Have Insiders Sold Kotak Mahindra Bank Shares Recently?

Some Kotak Mahindra Bank Limited (NSE:KOTAKBANK) shareholders may be a little concerned to see that insider Chengalath Jayaram recently sold a substantial ₹377m worth of stock at a price of ₹1,883 per share. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.

View our latest analysis for Kotak Mahindra Bank

Kotak Mahindra Bank Insider Transactions Over The Last Year

In fact, the recent sale by Chengalath Jayaram was the biggest sale of Kotak Mahindra Bank shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹1,902. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 30% of Chengalath Jayaram's holding.

Insiders in Kotak Mahindra Bank didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Kotak Mahindra Bank Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Kotak Mahindra Bank insiders own 26% of the company, worth about ₹994b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Kotak Mahindra Bank Tell Us?

Insiders sold Kotak Mahindra Bank shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Kotak Mahindra Bank is profitable and growing, we're not too worried by this. 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. For instance, we've identified 2 warning signs for Kotak Mahindra Bank (1 is concerning) you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.