Don't Ignore The Fact That This Insider Just Sold Some Shares In Motilal Oswal Financial Services Limited (NSE:MOTILALOFS)

By
Simply Wall St
Published
June 05, 2021
NSEI:MOTILALOFS
Source: Shutterstock

We note that a Motilal Oswal Financial Services Limited (NSE:MOTILALOFS) insider, Rohit Agarwal, recently sold ₹1.2m worth of stock for ₹821 per share. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

View our latest analysis for Motilal Oswal Financial Services

The Last 12 Months Of Insider Transactions At Motilal Oswal Financial Services

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Motilal Oswal bought ₹64m worth of shares at a price of ₹611 per share. Even though the purchase was made at a significantly lower price than the recent price (₹786), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 309.00k shares worth ₹189m. On the other hand they divested 95.39k shares, for ₹59m. In total, Motilal Oswal Financial Services insiders bought more than they sold over the last year. 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:MOTILALOFS Insider Trading Volume June 6th 2021

Motilal Oswal Financial Services is not the only stock that insiders are buying. 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 Motilal Oswal Financial Services

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. It's great to see that Motilal Oswal Financial Services insiders own 20% of the company, worth about ₹23b. 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 Does This Data Suggest About Motilal Oswal Financial Services Insiders?

An insider sold Motilal Oswal Financial Services shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Motilal Oswal Financial Services (2 are a bit concerning!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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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