ideaForge Technology Up 22%, But Some Insiders Miss Out

Despite the fact that ideaForge Technology Limited (NSE:IDEAFORGE) stock rose 22% last week, insiders who sold ₹11m 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 ₹596, 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.

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The Last 12 Months Of Insider Transactions At ideaForge Technology

In the last twelve months, the biggest single sale by an insider was when the insider, Ravi Bhagavatula, sold ₹6.5m worth of shares at a price of ₹581 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹464). So it may not tell us anything about how insiders feel about the current share price.

In the last year ideaForge Technology insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for ideaForge Technology

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Does ideaForge Technology Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ideaForge Technology insiders own 40% of the company, currently worth about ₹8.1b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At ideaForge Technology Tell Us?

The fact that there have been no ideaForge Technology insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of ideaForge Technology, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ideaForge Technology. While conducting our analysis, we found that ideaForge Technology has 1 warning sign and it would be unwise to ignore this.

But note: ideaForge Technology 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 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.