Fusion Micro Finance Chief Financial Officer Gaurav Maheshwari Sells 28% Of Holding \

Anyone interested in Fusion Micro Finance Limited (NSE:FUSION) should probably be aware that the Chief Financial Officer, Gaurav Maheshwari, recently divested ₹26m worth of shares in the company, at an average price of ₹515 each. That sale was 28% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Fusion Micro Finance

The Last 12 Months Of Insider Transactions At Fusion Micro Finance

Notably, that recent sale by Gaurav Maheshwari is the biggest insider sale of Fusion Micro Finance shares that we've seen in the last year. That means that an insider was selling shares at below the current price (₹524). 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. This single sale was just 28% of Gaurav Maheshwari's stake.

In total, Fusion Micro 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Fusion Micro Finance better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Fusion Micro Finance

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Fusion Micro Finance insiders own about ₹3.0b worth of shares. That equates to 5.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Fusion Micro Finance Insider Transactions Indicate?

Insiders sold Fusion Micro Finance shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Fusion Micro Finance is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. Be aware that Fusion Micro Finance is showing 3 warning signs in our investment analysis, and 2 of those are significant...

Of course Fusion Micro 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, but not derivative transactions.

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