Don't Ignore The Fact That This Insider Just Sold Some Shares In IndoStar Capital Finance Limited (NSE:INDOSTAR)

We'd be surprised if IndoStar Capital Finance Limited (NSE:INDOSTAR) shareholders haven't noticed that an insider, Pankaj Thapar, recently sold ₹13m worth of stock at ₹326 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for IndoStar Capital Finance

IndoStar Capital Finance Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Prashant Joshi, sold ₹78m worth of shares at a price of ₹290 per share. That means that an insider was selling shares at slightly below the current price (₹322). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 100% of Prashant Joshi's holding.

IndoStar Capital Finance insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like IndoStar Capital Finance better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does IndoStar Capital Finance Boast High 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. Insiders own 1.6% of IndoStar Capital Finance shares, worth about ₹640m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At IndoStar Capital Finance Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 IndoStar Capital Finance. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of IndoStar Capital Finance.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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