Whole Time Director & Director of Strategy Rajiv Lochan Just Bought A Handful Of Shares In Sundaram Finance Limited (NSE:SUNDARMFIN)

Whilst it may not be a huge deal, we thought it was good to see that the Sundaram Finance Limited (NSE:SUNDARMFIN) Whole Time Director & Director of Strategy, Rajiv Lochan, recently bought ₹3.9m worth of stock, for ₹2,280 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Sundaram Finance

Sundaram Finance Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, N. Krishnan, sold ₹29m worth of shares at a price of ₹1,632 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹2,253. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 8.4% of N. Krishnan's holding.

In the last twelve months insiders purchased 7.24k shares for ₹13m. But they sold 71.13k shares for ₹119m. Over the last year we saw more insider selling of Sundaram Finance shares, than buying. 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!

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Does Sundaram Finance Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Sundaram Finance insiders own about ₹67b worth of shares (which is 26% of the company). 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 Does This Data Suggest About Sundaram Finance Insiders?

The insider sales have outweighed the insider buying, at Sundaram Finance, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sundaram Finance. Every company has risks, and we've spotted 4 warning signs for Sundaram Finance (of which 1 is significant!) you should know about.

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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