Have Share India Securities Limited (NSE:SHAREINDIA) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
June 07, 2021
NSEI:SHAREINDIA

Investors may wish to note that the Chief Financial Officer of Share India Securities Limited, Vijay Rana, recently netted ₹4.6m from selling stock, receiving an average price of ₹464. It wasn't a huge sale, but it did reduce their holding by 20%. This does not instill confidence.

View our latest analysis for Share India Securities

The Last 12 Months Of Insider Transactions At Share India Securities

In fact, the recent sale by Chief Financial Officer Vijay Rana was not their only sale of Share India Securities shares this year. Earlier in the year, they fetched ₹179 per share in a -₹5.1m sale. That means that even when the share price was below the current price of ₹470, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 36% of Vijay Rana's holding.

Happily, we note that in the last year insiders paid ₹15m for 81.49k shares. But they sold 38.73k shares for ₹9.8m. In total, Share India Securities 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:SHAREINDIA Insider Trading Volume June 8th 2021

Share India Securities 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Share India Securities insiders own 86% of the company, currently worth about ₹13b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Share India Securities Insider Transactions Indicate?

An insider hasn't bought Share India Securities stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Share India Securities. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Share India Securities.

Of course Share India 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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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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