Chief Strategy Officer Abdul Khan Just Sold A Bunch Of Shares In Spandana Sphoorty Financial Limited (NSE:SPANDANA)

We'd be surprised if Spandana Sphoorty Financial Limited (NSE:SPANDANA) shareholders haven't noticed that the Chief Strategy Officer, Abdul Khan, recently sold ₹15m worth of stock at ₹728 per share. That sale was 28% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Spandana Sphoorty Financial

Spandana Sphoorty Financial Insider Transactions Over The Last Year

In fact, the recent sale by Abdul Khan was the biggest sale of Spandana Sphoorty Financial shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of ₹721. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).

In the last twelve months insiders purchased 37.30k shares for ₹22m. But they sold 22.02k shares for ₹16m. Overall, Spandana Sphoorty Financial insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Spandana Sphoorty Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Spandana Sphoorty Financial Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Spandana Sphoorty Financial insiders own 17% of the company, currently worth about ₹8.1b based on the recent share price. 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 Spandana Sphoorty Financial Insider Transactions Indicate?

The stark truth for Spandana Sphoorty Financial is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for Spandana Sphoorty Financial (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

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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