Arman Financial Services Limited (NSE:ARMANFIN) drops to ₹643, yet insiders may have sold too early fetching only ₹633 apiece

By
Simply Wall St
Published
August 11, 2021
NSEI:ARMANFIN
Source: Shutterstock

Despite the fact that Arman Financial Services Limited's (NSE:ARMANFIN) value has dropped 13% in the last week insiders who sold ₹2.1m worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of ₹633 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 would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Arman Financial Services

The Last 12 Months Of Insider Transactions At Arman Financial Services

While no particular insider transaction stood out, we can still look at the overall trading.

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!

insider-trading-volume
NSEI:ARMANFIN Insider Trading Volume August 12th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Arman Financial Services insiders own 31% of the company, worth about ₹1.7b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Arman Financial Services Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Arman Financial Services, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for Arman Financial Services you should be aware of, and 1 of these is a bit concerning.

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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