Don't Ignore The Fact That This Insider Just Sold Some Shares In Indiabulls Real Estate Limited (NSE:IBREALEST)

Anyone interested in Indiabulls Real Estate Limited (NSE:IBREALEST) should probably be aware that the Joint MD & Director, Mehul Charles Johnson, recently divested ₹20m worth of shares in the company, at an average price of ₹115 each. That sale was 13% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Indiabulls Real Estate

The Last 12 Months Of Insider Transactions At Indiabulls Real Estate

In fact, the recent sale by Mehul Charles Johnson was the biggest sale of Indiabulls Real Estate shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of ₹99.55. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Indiabulls Real Estate didn't buy any shares in 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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Insider Ownership of Indiabulls Real Estate

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. Indiabulls Real Estate insiders own about ₹4.6b worth of shares. That equates to 9.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Indiabulls Real Estate Insiders?

Insiders haven't bought Indiabulls Real Estate stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Indiabulls Real Estate is showing 4 warning signs in our investment analysis, and 2 of those are a bit concerning...

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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, but not derivative transactions.

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