Have Insiders Sold Metropolis Healthcare Shares Recently?

Some Metropolis Healthcare Limited (NSE:METROPOLIS) shareholders may be a little concerned to see that the Founder & Chairman Emeritus, Sushil Shah, recently sold a substantial ₹136m worth of stock at a price of ₹2,087 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.2%.

Check out our latest analysis for Metropolis Healthcare

The Last 12 Months Of Insider Transactions At Metropolis Healthcare

Notably, that recent sale by Sushil Shah is the biggest insider sale of Metropolis Healthcare shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹2,100. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Sushil Shah ditched 100.00k shares over the year. The average price per share was ₹1,975. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Metropolis Healthcare insiders own 2.7% of the company, worth about ₹2.9b. 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 Metropolis Healthcare Insiders?

An insider sold Metropolis Healthcare shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of 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. In terms of investment risks, we've identified 1 warning sign with Metropolis Healthcare and understanding it should be part of your investment process.

But note: Metropolis Healthcare 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 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.