Have Insiders Sold Info Edge (India) Limited (NSE:NAUKRI) Shares Recently?

By
Simply Wall St
Published
December 20, 2020
NSEI:NAUKRI

We wouldn't blame Info Edge (India) Limited (NSE:NAUKRI) shareholders if they were a little worried about the fact that Kapil Kapoor, the Non-Executive Chairman recently netted about ₹88m selling shares at an average price of ₹4,643. However, that sale only accounted for 0.8% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Info Edge (India)

Info Edge (India) Insider Transactions Over The Last Year

In fact, the recent sale by Non-Executive Chairman Kapil Kapoor was not their only sale of Info Edge (India) shares this year. Earlier in the year, they fetched ₹2,733 per share in a -₹164m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹4,644. 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. We note that the biggest single sale was only 2.3%of Kapil Kapoor's holding.

Happily, we note that in the last year insiders paid ₹1.2m for 569.00 shares. On the other hand they divested 253.62k shares, for ₹801m. Over the last year we saw more insider selling of Info Edge (India) shares, than buying. 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!

insider-trading-volume
NSEI:NAUKRI Insider Trading Volume December 21st 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Info Edge (India)

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Info Edge (India) insiders own 38% of the company, worth about ₹229b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Info Edge (India) Insiders?

Insiders sold Info Edge (India) shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Info Edge (India) is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Info Edge (India). For example - Info Edge (India) has 4 warning signs we think you should be aware of.

Of course Info Edge (India) may not be the best stock to buy. So you may wish to see this free collection of high quality 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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This article by Simply Wall St is general in nature. 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.
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