Insider Sellers Might Regret Selling Om Infra Shares at a Lower Price Than Current Market Value

Om Infra Limited's (NSE:OMINFRAL) value has fallen 24% in the last week, but insiders who sold ₹196m worth of stock over the last year have had less success. Given that the average selling price of ₹138 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Om Infra

Om Infra Insider Transactions Over The Last Year

The insider, Jyoti Kothari, made the biggest insider sale in the last 12 months. That single transaction was for ₹52m worth of shares at a price of ₹167 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹110. So it may not shed much light on insider confidence at current levels.

Insiders in Om Infra didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Of Om Infra

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Om Infra insiders own 53% of the company, currently worth about ₹5.6b 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 Om Infra Tell Us?

It doesn't really mean much that no insider has traded Om Infra shares in the last quarter. While we feel good about high insider ownership of Om Infra, we can't say the same about the selling of shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Om Infra has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

Of course Om Infra 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.

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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.