Trade Alert: The Founder Of Spandana Sphoorty Financial Limited (NSE:SPANDANA), Padmaja Gangireddy, Has Just Spent ₹3.4m Buying A Few More Shares

Even if it's not a huge purchase, we think it was good to see that Padmaja Gangireddy, the Founder of Spandana Sphoorty Financial Limited (NSE:SPANDANA) recently shelled out ₹3.4m to buy stock, at ₹681 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

View our latest analysis for Spandana Sphoorty Financial

The Last 12 Months Of Insider Transactions At Spandana Sphoorty Financial

The insider, Vijaya Siva Rami Vendidandi, made the biggest insider sale in the last 12 months. That single transaction was for ₹131m worth of shares at a price of ₹728 each. That means that an insider was selling shares at around the current price of ₹660. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

All up, insiders sold more shares in Spandana Sphoorty Financial than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Spandana Sphoorty Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Spandana Sphoorty Financial insiders own about ₹7.2b worth of shares. That equates to 17% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Spandana Sphoorty Financial Insiders?

Unfortunately, there has been more insider selling of Spandana Sphoorty Financial stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Spandana Sphoorty Financial you should be aware of, and 1 of them is significant.

But note: Spandana Sphoorty Financial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

If you’re looking to trade Spandana Sphoorty Financial, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.