This Insider Has Just Sold Shares In Fortis Healthcare Limited (NSE:FORTIS)

We wouldn't blame Fortis Healthcare Limited (NSE:FORTIS) shareholders if they were a little worried about the fact that Ashish Bhatia, a company insider, recently netted about ₹51m selling shares at an average price of ₹161. That diminished their holding by a very significant 90%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Fortis Healthcare

Fortis Healthcare Insider Transactions Over The Last Year

Notably, that recent sale by Ashish Bhatia is the biggest insider sale of Fortis Healthcare shares that we've seen in the last year. That means that an insider was selling shares at below the current price (₹163). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 90% of Ashish Bhatia's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Fortis Healthcare Boast High Insider Ownership?

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Fortis Healthcare insiders own about ₹4.9b worth of shares. That equates to 4.0% 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 Fortis Healthcare Insiders?

An insider hasn't bought Fortis Healthcare stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Fortis Healthcare has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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