HDFC Asset Management Insiders Sold ₹1.1b Of Shares Suggesting Hesitancy

Many HDFC Asset Management Company Limited (NSE:HDFCAMC) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for HDFC Asset Management

HDFC Asset Management Insider Transactions Over The Last Year

The Head of Fixed Income, Shobhit Mehrotra, made the biggest insider sale in the last 12 months. That single transaction was for ₹112m worth of shares at a price of ₹4,480 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹3,993). So it may not tell us anything about how insiders feel about the current share price.

HDFC Asset Management insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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HDFC Asset Management Insiders Are Selling The Stock

The last three months saw significant insider selling at HDFC Asset Management. Specifically, insiders ditched ₹312m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. It appears that HDFC Asset Management insiders own 0.7% of the company, worth about ₹6.2b. 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 Does This Data Suggest About HDFC Asset Management Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of HDFC Asset Management.

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 of direct interests only, but not derivative transactions or indirect interests.

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