Insiders who sold ₹404m worth of ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI) stock last year were handsomely rewarded

By
Simply Wall St
Published
March 22, 2022
NSEI:ICICIPRULI
Source: Shutterstock

Despite the fact that ICICI Prudential Life Insurance Company Limited (NSE:ICICIPRULI) stock rose 3.0% last week, insiders who sold ₹404m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹609, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for ICICI Prudential Life Insurance

The Last 12 Months Of Insider Transactions At ICICI Prudential Life Insurance

Over the last year, we can see that the biggest insider sale was by the insider, Bharati Kinger, for ₹42m worth of shares, at about ₹693 per share. 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 ₹477. So it is hard to draw any strong conclusion from it.

ICICI Prudential Life Insurance insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NSEI:ICICIPRULI Insider Trading Volume March 22nd 2022

I will like ICICI Prudential Life Insurance better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of ICICI Prudential Life Insurance

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that ICICI Prudential Life Insurance insiders own about ₹463m worth of shares (which is 0.07% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At ICICI Prudential Life Insurance Tell Us?

The fact that there have been no ICICI Prudential Life Insurance insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of ICICI Prudential Life Insurance, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - ICICI Prudential Life Insurance has 3 warning signs we think you should be aware of.

But note: ICICI Prudential 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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