Prime Securities Limited (NSE:PRIMESECU) drops to ₹115, yet insiders may have sold too early fetching only ₹50.39 apiece

By
Simply Wall St
Published
November 16, 2021
NSEI:PRIMESECU
Source: Shutterstock

Prime Securities Limited's (NSE:PRIMESECU) value has fallen 11% in the last week, but insiders who sold ₹454k worth of stock over the last year have had less success. Given that the average selling price of ₹50.39 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Prime Securities

Prime Securities Insider Transactions Over The Last Year

While no particular insider transaction stood out, we can still look at the overall trading.

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:PRIMESECU Insider Trading Volume November 17th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Prime Securities

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Prime Securities insiders own about ₹1.0b worth of shares. That equates to 34% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Prime Securities Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Prime Securities, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Prime Securities. Every company has risks, and we've spotted 5 warning signs for Prime Securities (of which 2 are a bit concerning!) you should know about.

Of course Prime 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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