Tourism Finance Corporation of India Limited (NSE:TFCILTD) Insiders Increased Their Holdings

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Tourism Finance Corporation of India Limited (NSE:TFCILTD).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Tourism Finance Corporation of India

Tourism Finance Corporation of India Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Non-Independent Director Koppara Thomas for ₹46m worth of shares, at about ₹38.14 per share. We do like to see buying, but this purchase was made at well below the current price of ₹53.90. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Koppara Thomas bought 2.60m shares over the last 12 months at an average price of ₹37.67. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership of Tourism Finance Corporation of India

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Tourism Finance Corporation of India insiders own 19% of the company, worth about ₹857m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

It doesn't really mean much that no insider has traded Tourism Finance Corporation of India shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Tourism Finance Corporation of India insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tourism Finance Corporation of India. When we did our research, we found 3 warning signs for Tourism Finance Corporation of India (1 is concerning!) that we believe deserve your full attention.

But note: Tourism Finance Corporation of India 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.

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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.
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