With SBI Cards and Payment Services Limited's (NSE:SBICARD)) price down 4.1% this week, insiders might find some solace having sold ₹657m worth of shares earlier this year.

By
Simply Wall St
Published
February 24, 2022
NSEI:SBICARD
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Over the past year, insiders sold ₹657m worth of SBI Cards and Payment Services Limited (NSE:SBICARD) stock at an average price of ₹1,067 per share allowing them to get the most out of their money. The company’s market cap plunged by ₹32b after price dropped by 4.1% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for SBI Cards and Payment Services

SBI Cards and Payment Services Insider Transactions Over The Last Year

The insider, Rajat Mathur, made the biggest insider sale in the last 12 months. That single transaction was for ₹27m worth of shares at a price of ₹1,101 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (₹798). So it may not tell us anything about how insiders feel about the current share price.

SBI Cards and Payment Services insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

I will like SBI Cards and Payment Services better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at SBI Cards and Payment Services Have Sold Stock Recently

The last quarter saw substantial insider selling of SBI Cards and Payment Services shares. Specifically, insiders ditched ₹11m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership of SBI Cards and Payment 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 appears that SBI Cards and Payment Services insiders own 0.2% of the company, worth about ₹1.2b. 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 SBI Cards and Payment Services Tell Us?

Insiders sold SBI Cards and Payment Services shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that SBI Cards and Payment Services is growing earnings. 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 SBI Cards and Payment Services. For instance, we've identified 3 warning signs for SBI Cards and Payment Services (1 can't be ignored) you should be aware of.

Of course SBI Cards and Payment Services 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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