Insiders may have sold ICICI Securities Limited (NSE:ISEC) early at ₹549 per share, while current price continues to trade high at ₹651

By
Simply Wall St
Published
February 24, 2022
NSEI:ISEC
Source: Shutterstock

Even though ICICI Securities Limited (NSE:ISEC) has fallen by 7.5% over the past week , insiders who sold ₹21m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹549 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ICICI Securities

ICICI Securities Insider Transactions Over The Last Year

The Head of Institutional Equities, Jaideep Goswami, made the biggest insider sale in the last 12 months. That single transaction was for ₹4.4m worth of shares at a price of ₹740 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹651). So it may not tell us anything about how insiders feel about the current share price.

In the last year ICICI Securities insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:ISEC Insider Trading Volume February 24th 2022

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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data isn't picking up on much insider ownership at ICICI Securities, though insiders do hold about ₹72m worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Do The ICICI Securities Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of ICICI Securities insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with ICICI Securities and understanding them should be part of your investment process.

Of course ICICI Securities may not be the best stock to buy. So you may wish to see this free collection of high quality 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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