Don't Ignore The Fact That This Insider Just Sold Some Shares In ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI)

Investors may wish to note that an insider of ICICI Prudential Life Insurance Company Limited, Madhu Burugupalli, recently netted ₹1.8m from selling stock, receiving an average price of ₹445. It might not be a huge sale, but it did reduce their holding size 32%, hardly encouraging.

See our latest analysis for ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Insider Transactions Over The Last Year

The insider, Puneet Nanda, made the biggest insider sale in the last 12 months. That single transaction was for ₹23m worth of shares at a price of ₹465 each. So what is clear is that an insider saw fit to sell at around the current price of ₹448. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.

Over the last year we saw more insider selling of ICICI Prudential Life Insurance shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. 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 ICICI Prudential Life Insurance

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. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own ₹346m worth of ICICI Prudential Life Insurance stock, about 0.05% of the company. I generally like to see higher levels of ownership.

So What Do The ICICI Prudential Life Insurance Insider Transactions Indicate?

An insider sold ICICI Prudential Life Insurance shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 Prudential Life Insurance has 1 warning sign and it would be unwise to ignore this.

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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, but not derivative transactions.

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