Insiders At E Factor Experiences Sold ₹139m In Stock, Alluding To Potential Weakness

Many E Factor Experiences Limited (NSE:EFACTOR) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. 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, if numerous insiders are selling, shareholders should investigate more.

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.

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The Last 12 Months Of Insider Transactions At E Factor Experiences

In the last twelve months, the biggest single sale by an insider was when the Chairman, Jai Thakore, sold ₹45m worth of shares at a price of ₹304 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹252. So it may not tell us anything about how insiders feel about the current share price.

E Factor Experiences insiders didn't buy any shares over the last year. 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!

View our latest analysis for E Factor Experiences

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Insider Ownership Of E Factor Experiences

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. E Factor Experiences insiders own 70% of the company, currently worth about ₹2.3b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

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

It doesn't really mean much that no insider has traded E Factor Experiences shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the E Factor Experiences insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing E Factor Experiences. To help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in E Factor Experiences.

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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 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.