Have Avenue Supermarts Insiders Been Selling Stock?

Some Avenue Supermarts Limited (NSE:DMART) shareholders may be a little concerned to see that the CEO, MD & Director, Ignatius Noronha, recently sold a substantial ₹200m worth of stock at a price of ₹3,748 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.4%.

See our latest analysis for Avenue Supermarts

Avenue Supermarts Insider Transactions Over The Last Year

Notably, that recent sale by Ignatius Noronha is the biggest insider sale of Avenue Supermarts shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹3,683. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid ₹4.2m for 900.00 shares. On the other hand they divested 427.30k shares, for ₹2.0b. Over the last year we saw more insider selling of Avenue Supermarts shares, than buying. 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!

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Insider Ownership Of Avenue Supermarts

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Avenue Supermarts insiders own 64% of the company, worth about ₹1.5t. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Avenue Supermarts Insider Transactions Indicate?

Insiders haven't bought Avenue Supermarts stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Avenue Supermarts makes money, and is growing profits. 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. Of course, the future is what matters most. So if you are interested in Avenue Supermarts, you should check out this free report on analyst forecasts for the company.

Of course Avenue Supermarts 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.