MD & Director Mohit Talwar Just Sold A Bunch Of Shares In Max Financial Services Limited (NSE:MFSL)

Some Max Financial Services Limited (NSE:MFSL) shareholders may be a little concerned to see that the MD & Director, Mohit Talwar, recently sold a substantial ₹129m worth of stock at a price of ₹643 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 57% of their entire holding.

See our latest analysis for Max Financial Services

Max Financial Services Insider Transactions Over The Last Year

Notably, that recent sale by Mohit Talwar is the biggest insider sale of Max Financial Services shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹682. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 57% of Mohit Talwar's holding.

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!

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Does Max Financial Services Boast High 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. We usually like to see fairly high levels of insider ownership. Max Financial Services insiders own about ₹2.7b worth of shares. That equates to 1.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Max Financial Services Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Max Financial Services. In terms of investment risks, we've identified 2 warning signs with Max Financial Services and understanding these should be part of your investment process.

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, but not derivative transactions.

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