Non-Executive Director of Tourism Finance Corporation of India Picks Up 3.1% More Stock

Tourism Finance Corporation of India Limited (NSE:TFCILTD) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Aditya Halwasiya, recently bought a whopping ₹72m worth of stock, at a price of ₹144. While that only increased their holding size by 3.1%, it is still a big swing by our standards.

See our latest analysis for Tourism Finance Corporation of India

The Last 12 Months Of Insider Transactions At Tourism Finance Corporation of India

In fact, the recent purchase by Non-Executive Director Aditya Halwasiya was not their only acquisition of Tourism Finance Corporation of India shares this year. They previously made an even bigger purchase of ₹90m worth of shares at a price of ₹180 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹153). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Aditya Halwasiya was the only individual insider to buy during the last year.

Aditya Halwasiya bought a total of 2.61m shares over the year at an average price of ₹164. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Tourism Finance Corporation of India

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 27% of Tourism Finance Corporation of India shares, worth about ₹3.8b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Tourism Finance Corporation of India Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Tourism Finance Corporation of India insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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 2 warning signs (1 is concerning!) 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.

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

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.