Insider Buyers Lose ₹12m As Homesfy Realty Sheds ₹243m

The recent price decline of 21% in Homesfy Realty Limited's (NSE:HOMESFY) stock may have disappointed insiders who bought ₹25.1m worth of shares at an average price of ₹581 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth ₹12.9m which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Homesfy Realty Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Founder Ashish Kukreja bought ₹20m worth of shares at a price of ₹555 per share. That means that even when the share price was higher than ₹299 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Ashish Kukreja was the only individual insider to buy shares in the last twelve months.

Ashish Kukreja bought a total of 43.20k shares over the year at an average price of ₹581. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Homesfy Realty

Homesfy Realty is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Homesfy Realty Boast High Insider Ownership?

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. Homesfy Realty insiders own about ₹573m worth of shares (which is 63% 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.

So What Does This Data Suggest About Homesfy Realty Insiders?

It doesn't really mean much that no insider has traded Homesfy Realty shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Homesfy Realty insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Homesfy Realty. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Homesfy Realty.

Of course Homesfy Realty 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.