Have Suryoday Small Finance Bank Insiders Been Selling Stock?

We'd be surprised if Suryoday Small Finance Bank Limited (NSE:SURYODAY) shareholders haven't noticed that an insider, Narayan Rao, recently sold ₹13m worth of stock at ₹190 per share. The eyebrow raising move amounted to a reduction of 40% in their holding.

Check out our latest analysis for Suryoday Small Finance Bank

Suryoday Small Finance Bank Insider Transactions Over The Last Year

In fact, the recent sale by insider Narayan Rao was not their only sale of Suryoday Small Finance Bank shares this year. They previously made an even bigger sale of -₹20m worth of shares at a price of ₹199 per share. That means that an insider was selling shares at around the current price of ₹191. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Suryoday Small Finance Bank insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of Suryoday Small Finance Bank shares, worth about ₹5.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Suryoday Small Finance Bank Insider Transactions Indicate?

Insiders haven't bought Suryoday Small Finance Bank stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Suryoday Small Finance Bank is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 1 warning sign that you should run your eye over to get a better picture of Suryoday Small Finance Bank.

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 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.