Insiders Sold Fusion Finance At ₹505, Meanwhile Stock Sits Near ₹171

Fusion Finance Limited's (NSE:FUSION) value has fallen 10% in the last week, but insiders who sold ₹25m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹505 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Fusion Finance

Fusion Finance Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CBO - MFI, Ankush Ahluwalia, sold ₹7.4m worth of shares at a price of ₹502 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 (₹171). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 10.50k shares for ₹4.9m. But insiders sold 49.79k shares worth ₹25m. In total, Fusion Finance insiders sold more than they bought over the last year. You can see the insider transactions (by companies and 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!

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

Does Fusion Finance Boast High 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. We usually like to see fairly high levels of insider ownership. Insiders own 5.8% of Fusion Finance shares, worth about ₹1.0b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Fusion Finance Insiders?

The fact that there have been no Fusion Finance insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Fusion Finance insider transactions don't fill us with confidence. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Fusion Finance you should be aware of.

Of course Fusion Finance may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.