This Insider Has Just Sold Shares In Arman Financial Services Limited (NSE:ARMANFIN)

We note that a Arman Financial Services Limited (NSE:ARMANFIN) insider, Himani Manakiwala, recently sold ₹2.1m worth of stock for ₹633 per share. It might not be a huge sale, but it did reduce their holding size 14%, hardly encouraging.

See our latest analysis for Arman Financial Services

The Last 12 Months Of Insider Transactions At Arman Financial Services

Notably, that recent sale by Himani Manakiwala is the biggest insider sale of Arman Financial Services shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹640. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Himani Manakiwala's stake.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Arman Financial Services

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. Arman Financial Services insiders own about ₹1.6b worth of shares. That equates to 31% of the company. 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 Does This Data Suggest About Arman Financial Services Insiders?

An insider hasn't bought Arman Financial Services stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arman Financial Services. For instance, we've identified 5 warning signs for Arman Financial Services (1 makes us a bit uncomfortable) you should be aware of.

But note: Arman Financial Services 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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