Have IIFL Wealth Management Limited (NSE:IIFLWAM) Insiders Been Selling Their Stock?

We wouldn't blame IIFL Wealth Management Limited (NSE:IIFLWAM) shareholders if they were a little worried about the fact that Anirudha Taparia, a company insider, recently netted about ₹50m selling shares at an average price of ₹998. However, that sale only accounted for 9.7% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for IIFL Wealth Management

IIFL Wealth Management Insider Transactions Over The Last Year

The Non-Executive Director & Promoter, Nirmal Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹580m worth of shares at a price of ₹1,450 each. 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 (₹1,016). So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 162.93k shares for ₹157m. But they sold 1.71m shares for ₹2.2b. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does IIFL Wealth Management 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. 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's great to see that IIFL Wealth Management insiders own 26% of the company, worth about ₹24b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About IIFL Wealth Management Insiders?

Unfortunately, there has been more insider selling of IIFL Wealth Management stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IIFL Wealth Management. For example, IIFL Wealth Management has 4 warning signs (and 1 which is potentially serious) we think you should know about.

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, 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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