Trade Alert: The Senior Managing Partner and Head of Markets – Western & Southern India Of IIFL Wealth Management Limited (NSE:IIFLWAM), Vinay Ahuja, Has Sold Some Shares Recently

Some IIFL Wealth Management Limited (NSE:IIFLWAM) shareholders may be a little concerned to see that the Senior Managing Partner and Head of Markets – Western & Southern India, Vinay Ahuja, recently sold a substantial ₹400m worth of stock at a price of ₹1,000 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 98% of their entire holding.

See our latest analysis for IIFL Wealth Management

IIFL Wealth Management Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director & Promoter, Nirmal Jain, for ₹580m worth of shares, at about ₹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. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹1,028. 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 2.30m shares, for ₹2.8b. Over the last year we saw more insider selling of IIFL Wealth Management shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does IIFL Wealth Management Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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's great to see that IIFL Wealth Management insiders own 25% of the company, worth about ₹23b. 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 Does This Data Suggest About IIFL Wealth Management Insiders?

The stark truth for IIFL Wealth Management is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in IIFL Wealth Management.

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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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