We note that the Manappuram Finance Limited (NSE:MANAPPURAM) Executive VP and CEO of Vehicle & Equipment Finance, K. Kumar, recently sold ₹4.7m worth of stock for ₹169 per share. That might not be a huge sum but it was 100% of their personal holding, so we find it a little discouraging.
The Last 12 Months Of Insider Transactions At Manappuram Finance
In the last twelve months, the biggest single sale by an insider was when the Non-Independent & Non-Executive Director, B. N. Babu, sold ₹18m worth of shares at a price of ₹179 per share. So what is clear is that an insider saw fit to sell at around the current price of ₹173. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Manappuram Finance didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Manappuram Finance insiders own about ₹54b worth of shares (which is 37% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Manappuram Finance Insider Transactions Indicate?
Insiders haven't bought Manappuram 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. But since Manappuram Finance is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Manappuram Finance. For example, Manappuram Finance has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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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