Insiders At ICICI Lombard General Insurance Sold ₹67m In Stock, Alluding To Potential Weakness

The fact that multiple ICICI Lombard General Insurance Company Limited (NSE:ICICIGI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for ICICI Lombard General Insurance

The Last 12 Months Of Insider Transactions At ICICI Lombard General Insurance

Over the last year, we can see that the biggest insider sale was by the insider, Shailesh Dubey, for ₹47m worth of shares, at about ₹2,252 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹1,921). So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of ICICI Lombard General Insurance 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!

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Insiders At ICICI Lombard General Insurance Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at ICICI Lombard General Insurance. In that time, insider Shailesh Dubey dumped ₹58m worth of shares. Meanwhile insider Sanjay Pujari bought ₹21k worth , as we said above . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Does ICICI Lombard General Insurance Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of ICICI Lombard General Insurance shares, worth about ₹1.8b. 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 ICICI Lombard General Insurance Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at ICICI Lombard General Insurance, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, ICICI Lombard General Insurance makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that ICICI Lombard General Insurance has 2 warning signs and it would be unwise to ignore these.

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 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.