Trade Alert: The CEO, MD & Whole-Time Director Of L&T Finance Holdings Limited (NSE:L&TFH), Dinanath Dubhashi, Has Sold Some Shares Recently

Some L&T Finance Holdings Limited (NSE:L&TFH) shareholders may be a little concerned to see that the CEO, MD & Whole-Time Director, Dinanath Dubhashi, recently sold a substantial ₹42m worth of stock at a price of ₹106 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 92% of their entire holding.

View our latest analysis for L&T Finance Holdings

The Last 12 Months Of Insider Transactions At L&T Finance Holdings

In fact, the recent sale by Dinanath Dubhashi was the biggest sale of L&T Finance Holdings shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹92.25. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in L&T Finance Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does L&T Finance Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, L&T Finance Holdings insiders have about 0.1% of the stock, worth approximately ₹201m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At L&T Finance Holdings Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. For instance, we've identified 6 warning signs for L&T Finance Holdings (1 is a bit concerning) you should be aware of.

Of course L&T Finance Holdings 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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