Investors may wish to note that an insider of Edelweiss Financial Services Limited, Hemant Daga, recently netted ₹4.5m from selling stock, receiving an average price of ₹81.77. However we note that the sale only shrunk their holding by 3.6%.
Edelweiss Financial Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Rashmi Jain, for ₹19m worth of shares, at about ₹38.40 per share. That means that an insider was selling shares at slightly below the current price (₹74.30). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was 100% of Rashmi Jain’s holding.
Over the last year, we can see that insiders have bought 400.00k shares worth ₹15m. But insiders sold 990.23k shares worth ₹69m. Over the last year we saw more insider selling of Edelweiss Financial Services shares, than buying. You can see the insider transactions (by companies and 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).
Insider Ownership of Edelweiss 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Edelweiss Financial Services insiders own 39% of the company, currently worth about ₹26b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Edelweiss Financial Services Tell Us?
Insiders haven’t bought Edelweiss Financial Services stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. In terms of investment risks, we’ve identified 4 warning signs with Edelweiss Financial Services and understanding these should be part of your investment process.
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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