Have E Factor Experiences Insiders Been Selling Stock?

We'd be surprised if E Factor Experiences Limited (NSE:EFACTOR) shareholders haven't noticed that the MD & Director, Samit Garg, recently sold ₹28m worth of stock at ₹282 per share. However, the silver lining is that the sale only reduced their total holding by 3.5%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for E Factor Experiences

The Last 12 Months Of Insider Transactions At E Factor Experiences

In fact, the recent sale by Samit Garg was the biggest sale of E Factor Experiences shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of ₹285, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 3.5% of Samit Garg's stake.

In the last year E Factor Experiences insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like E Factor Experiences better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does E Factor Experiences Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. E Factor Experiences insiders own about ₹2.7b worth of shares (which is 74% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At E Factor Experiences Tell Us?

Insiders sold E Factor Experiences shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since E Factor Experiences is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for E Factor Experiences (of which 2 shouldn't be ignored!) you should know about.

But note: E Factor Experiences 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 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.