This Insider Has Just Sold Shares In Renaissance Global

Anyone interested in Renaissance Global Limited (NSE:RGL) should probably be aware that the Vice President of Operations, Parag Shah, recently divested ₹16m worth of shares in the company, at an average price of ₹125 each. On the bright side, that sale was only 5.5% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Renaissance Global

Renaissance Global Insider Transactions Over The Last Year

Notably, that recent sale by Parag Shah is the biggest insider sale of Renaissance Global shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹120. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Renaissance Global insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Renaissance Global better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Renaissance Global Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Renaissance Global insiders own 28% of the company, worth about ₹3.2b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Renaissance Global Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Renaissance Global. Every company has risks, and we've spotted 3 warning signs for Renaissance Global (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Renaissance Global 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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