Don't Ignore The Fact That This Insider Just Sold Some Shares In ICICI Securities Limited (NSE:ISEC)

We note that the ICICI Securities Limited (NSE:ISEC) Head of Institutional Equities, Jaideep Goswami, recently sold ₹1.5m worth of stock for ₹733 per share. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.

View our latest analysis for ICICI Securities

ICICI Securities Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Ketan Kharkhanis, for ₹3.9m worth of shares, at about ₹523 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹725. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Ketan Kharkhanis's stake.

Insiders in ICICI Securities didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership of ICICI Securities

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests ICICI Securities insiders own 0.04% of the company, worth about ₹85m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At ICICI Securities 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. On the plus side, ICICI Securities makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ICICI Securities. You'd be interested to know, that we found 3 warning signs for ICICI Securities and we suggest you have a look.

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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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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