Have Edelweiss Financial Services Limited (NSE:EDELWEISS) Insiders Been Selling Their Stock?

We note that a Edelweiss Financial Services Limited (NSE:EDELWEISS) insider, Nilesh Sampat, recently sold ₹2.5m worth of stock for ₹124 per share. However we note that the sale only shrunk their holding by 5.0%.

View our latest analysis for Edelweiss Financial Services

The Last 12 Months Of Insider Transactions At Edelweiss Financial Services

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Non-Independent Director, Vidya Shah, sold ₹388m worth of shares at a price of ₹194 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹123). So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Edelweiss Financial Services shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

NSEI:EDELWEISS Recent Insider Trading, November 24th 2019
NSEI:EDELWEISS Recent Insider Trading, November 24th 2019

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Edelweiss Financial Services insiders own 40% of the company, currently worth about ₹43b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Edelweiss Financial Services Insiders?

Insiders sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.