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

Anyone interested in IndoStar Capital Finance Limited (NSE:INDOSTAR) should probably be aware that a company insider, Pankaj Thapar, recently divested ₹7.7m worth of shares in the company, at an average price of ₹386 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for IndoStar Capital Finance

The Last 12 Months Of Insider Transactions At IndoStar Capital Finance

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. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹320. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Prashant Joshi's holding.

In the last year IndoStar Capital Finance insiders didn't buy any company stock. 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).

Does IndoStar Capital Finance Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that IndoStar Capital Finance insiders own 2.5% of the company, worth about ₹989m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About IndoStar Capital Finance Insiders?

Insiders haven't bought IndoStar Capital Finance stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for IndoStar Capital Finance and we suggest you have a look.

But note: IndoStar Capital Finance may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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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