With Metropolis Healthcare Limited's (NSE:METROPOLIS)) price down 5.1% this week, insiders might find some solace having sold ₹1.4b worth of shares earlier this year.

Published
August 12, 2022
NSEI:METROPOLIS
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Over the past year, insiders sold ₹1.4b worth of Metropolis Healthcare Limited (NSE:METROPOLIS) stock at an average price of ₹3,131 per share allowing them to get the most out of their money. After the stock price dropped 5.1% last week, the company's market value declined by ₹4.1b, but insiders were able to mitigate their losses.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Metropolis Healthcare

Metropolis Healthcare Insider Transactions Over The Last Year

The Founder & Executive Chairman, Sushil Shah, made the biggest insider sale in the last 12 months. That single transaction was for ₹1.3b worth of shares at a price of ₹3,132 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹1,493. So it may not tell us anything about how insiders feel about the current share price. Notably Sushil Shah was also the biggest buyer, having purchased ₹297m worth of shares.

Over the last year we saw more insider selling of Metropolis Healthcare shares, than buying. 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!

insider-trading-volume
NSEI:METROPOLIS Insider Trading Volume August 12th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Metropolis Healthcare insiders own 22% of the company, worth about ₹17b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Metropolis Healthcare Tell Us?

The fact that there have been no Metropolis Healthcare insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Metropolis Healthcare insiders selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Metropolis Healthcare and understanding them should be part of your investment process.

Of course Metropolis Healthcare 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, but not derivative transactions.

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