Possible Bearish Signals With Info Edge (India) Insiders Disposing Stock

The fact that multiple Info Edge (India) Limited (NSE:NAUKRI) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Info Edge (India)

Info Edge (India) Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Sanjeev Bikhchandani, for ₹347m worth of shares, at about ₹8,669 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (₹7,152). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 32.00 shares for ₹277k. On the other hand they divested 421.56k shares, for ₹3.3b. In total, Info Edge (India) insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Info Edge (India) Have Sold Stock Recently

We've seen more insider selling than insider buying at Info Edge (India) recently. In total, insiders sold ₹1.0b worth of shares in that time. On the other hand we note insiders bought ₹277k worth of shares , as previously mentioned . We don't view these transactions as a positive sign.

Does Info Edge (India) Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Info Edge (India) insiders own 38% of the company, worth about ₹347b. 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 Info Edge (India) Tell Us?

The stark truth for Info Edge (India) is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Info Edge (India) is growing earnings. 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. 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 - Info Edge (India) has 2 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 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.