Have Metropolis Healthcare Insiders Been Selling Stock?

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 ₹51m worth of stock at a price of ₹2,023 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 1.9%.

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The Last 12 Months Of Insider Transactions At Metropolis Healthcare

In fact, the recent sale by Founder & Chairman Emeritus Sushil Shah was not their only sale of Metropolis Healthcare shares this year. They previously made an even bigger sale of -₹62m worth of shares at a price of ₹1,767 per share. That means that even when the share price was below the current price of ₹1,990, an insider wanted to cash in some shares. 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 only 0.4%of Sushil Shah's holding.

Sushil Shah sold a total of 60.00k shares over the year at an average price of ₹1,874. 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!

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Insider Ownership Of Metropolis Healthcare

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.8% of Metropolis Healthcare shares, worth about ₹2.8b. 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 Do The Metropolis Healthcare Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. 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. At Simply Wall St, we found 2 warning signs for Metropolis Healthcare that deserve your attention before buying any shares.

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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.