SecUR Credentials' Stock Sinks To ₹16.55, But Insiders Sold Even Lower

Even though SecUR Credentials Limited (NSE:SECURCRED) has fallen by 10% over the past week , insiders who sold ₹14m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of ₹23.37 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for SecUR Credentials

The Last 12 Months Of Insider Transactions At SecUR Credentials

The Chairperson & MD, Rahul Belwalkar, made the biggest insider sale in the last 12 months. That single transaction was for ₹7.6m worth of shares at a price of ₹23.79 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹16.55). So it is hard to draw any strong conclusion from it. Rahul Belwalkar was the only individual insider to sell over the last year.

Rahul Belwalkar divested 600.59k shares over the last 12 months at an average price of ₹23.37. 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!

I will like SecUR Credentials better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. SecUR Credentials insiders own about ₹668m worth of shares (which is 98% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About SecUR Credentials Insiders?

The fact that there have been no SecUR Credentials insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of SecUR Credentials insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SecUR Credentials. For instance, we've identified 4 warning signs for SecUR Credentials (2 don't sit too well with us) you should be aware of.

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.