This Insider Has Just Sold Shares In HDFC Life Insurance Company Limited (NSE:HDFCLIFE)

Anyone interested in HDFC Life Insurance Company Limited (NSE:HDFCLIFE) should probably be aware that the Non-Executive Director, Keki Mistry, recently divested ₹20m worth of shares in the company, at an average price of ₹584 each. On the bright side, that sale was only 3.1% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for HDFC Life Insurance

HDFC Life Insurance Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Parvez Mulla, sold ₹103m worth of shares at a price of ₹696 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹576. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of HDFC Life Insurance shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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 0.4% of HDFC Life Insurance shares, worth about ₹4.7b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At HDFC Life Insurance Tell Us?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But since HDFC Life Insurance is profitable and growing, we're not too worried by this. 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. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of HDFC Life Insurance.

But note: HDFC Life Insurance 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. 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.