Potential Edelweiss Financial Services Limited (NSE:EDELWEISS) shareholders may wish to note that the Chairman, Rashesh Shah, recently bought ₹12m worth of stock, paying ₹38.48 for each share. Although the purchase only increased their holding by 0.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Edelweiss Financial Services
Over the last year, we can see that the biggest insider sale was by the insider, Bismillah Chowdhary, for ₹18m worth of shares, at about ₹171 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹42.25). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid ₹15m for 400.00k shares. But insiders sold 1379036 shares worth ₹212m. All up, insiders sold more shares in Edelweiss Financial Services than they bought, over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Edelweiss Financial Services better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Edelweiss Financial Services insiders own 39% of the company, currently worth about ₹14b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Edelweiss Financial Services Insider Transactions Indicate?
It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Edelweiss Financial Services insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Edelweiss Financial Services has 3 warning signs we think you should be aware of.
But note: Edelweiss 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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