Don't Ignore The Insider Selling In 360 One Wam

Some 360 One Wam Limited (NSE:360ONE) shareholders may be a little concerned to see that insider Shaji Devakar recently sold a substantial ₹373m worth of stock at a price of ₹864 per share. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.

Check out our latest analysis for 360 One Wam

360 One Wam Insider Transactions Over The Last Year

The Non-Executive Director, Nirmal Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹1.6b worth of shares at a price of ₹800 each. That means that even when the share price was below the current price of ₹953, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 10% of Nirmal Jain's holding.

Over the last year, we can see that insiders have bought 23.25k shares worth ₹12m. On the other hand they divested 10.14m shares, for ₹7.3b. Over the last year we saw more insider selling of 360 One Wam shares, than buying. 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!

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Does 360 One Wam 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. 360 One Wam insiders own about ₹47b worth of shares (which is 14% of the company). 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 360 One Wam Tell Us?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, 360 One Wam makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 360 One Wam has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com