Don't Ignore The Fact That This Insider Just Sold Some Shares In IIFL Wealth Management Limited (NSE:IIFLWAM)

Investors may wish to note that an insider of IIFL Wealth Management Limited, Bhavesh Thakkar, recently netted ₹2.1m from selling stock, receiving an average price of ₹1,004. However we note that the sale only shrunk their holding by 9.3%.

View our latest analysis for IIFL Wealth Management

The Last 12 Months Of Insider Transactions At IIFL Wealth Management

In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director & Promoter, Nirmal Jain, sold ₹580m worth of shares at a price of ₹1,450 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹1,046. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid ₹150m for 155.43k shares. On the other hand they divested 1.80m shares, for ₹2.3b. Over the last year we saw more insider selling of IIFL Wealth Management shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. IIFL Wealth Management insiders own about ₹23b worth of shares (which is 25% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The IIFL Wealth Management Insider Transactions Indicate?

Unfortunately, there has been more insider selling of IIFL Wealth Management stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 IIFL Wealth Management is showing 4 warning signs in our investment analysis, and 1 of those is significant...

Of course IIFL Wealth 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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