Have HDFC Asset Management Insiders Been Selling Stock?

We wouldn't blame HDFC Asset Management Company Limited (NSE:HDFCAMC) shareholders if they were a little worried about the fact that Shobhit Mehrotra, the Head of Fixed Income recently netted about ₹112m selling shares at an average price of ₹4,471. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

Check out our latest analysis for HDFC Asset Management

HDFC Asset Management Insider Transactions Over The Last Year

Notably, that recent sale by Shobhit Mehrotra is the biggest insider sale of HDFC Asset Management shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹4,418. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

HDFC Asset Management insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of HDFC Asset Management

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. HDFC Asset Management insiders own 1.0% of the company, currently worth about ₹9.7b 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.

What Might The Insider Transactions At HDFC Asset Management Tell Us?

Insiders sold HDFC Asset Management shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, HDFC Asset Management makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing HDFC Asset Management. For example - HDFC Asset Management has 2 warning signs we think you should be aware of.

Of course HDFC Asset Management 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.