Keep An Eye On Suryoday Small Finance Bank As Insider Stock Selling Hits ₹66m

Despite the fact that Suryoday Small Finance Bank Limited (NSE:SURYODAY) stock rose 13% last week, insiders who sold ₹66m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹193, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

We check all companies for important risks. See what we found for Suryoday Small Finance Bank in our free report.

The Last 12 Months Of Insider Transactions At Suryoday Small Finance Bank

The insider, Narayan Rao, made the biggest insider sale in the last 12 months. That single transaction was for ₹20m worth of shares at a price of ₹199 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹127. So it may not tell us anything about how insiders feel about the current share price.

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

Check out our latest analysis for Suryoday Small Finance Bank

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).

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. Insiders own 25% of Suryoday Small Finance Bank shares, worth about ₹3.3b. 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?

It doesn't really mean much that no insider has traded Suryoday Small Finance Bank shares in the last quarter. While we feel good about high insider ownership of Suryoday Small Finance Bank, we can't say the same about the selling of shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Suryoday Small Finance Bank.

Of course Suryoday Small Finance Bank may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.