We note that a 5paisa Capital Limited (NSE:5PAISA) insider, Mohan Radhakrishnan, recently sold ₹2.0m worth of stock for ₹160 per share. That might not be a huge sum but it was 93% of their personal holding, so we find it a little discouraging.
The Last 12 Months Of Insider Transactions At 5paisa Capital
In fact, the recent sale by Mohan Radhakrishnan was the biggest sale of 5paisa Capital shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of ₹152. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 3.00k shares worth ₹456k. But insiders sold 12600 shares worth ₹2.0m. You can see the insider transactions (by 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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Does 5paisa Capital Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 5paisa Capital insiders own about ₹1.6b worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At 5paisa Capital Tell Us?
The stark truth for 5paisa Capital is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. When we did our research, we found 6 warning signs for 5paisa Capital (2 are a bit unpleasant!) that we believe deserve your full attention.
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, but not derivative transactions.
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