Keep An Eye On Tourism Finance Corporation of India As Insider Stock Selling Hits ₹1.8b

Despite a 14% gain in Tourism Finance Corporation of India Limited's (NSE:TFCILTD) stock price this week, shareholders shouldn't let up. Although prices were relatively low, insiders chose to sell ₹1.8b worth of stock in the past 12 months. This could be a sign of impending weakness.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Tourism Finance Corporation of India

Tourism Finance Corporation of India Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Koppara Thomas, sold ₹1.8b worth of shares at a price of ₹209 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹181. So it may not tell us anything about how insiders feel about the current share price. Koppara Thomas was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Tourism Finance Corporation of India better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Tourism Finance Corporation of India

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. Tourism Finance Corporation of India insiders own about ₹3.6b worth of shares. That equates to 22% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tourism Finance Corporation of India Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Tourism Finance Corporation of India insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Tourism Finance Corporation of India has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course Tourism Finance Corporation of India 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.