This Insider Has Just Sold Shares In Indiabulls Real Estate Limited (NSE:IBREALEST)

We note that a Indiabulls Real Estate Limited (NSE:IBREALEST) insider, Kubeir Khera, recently sold ₹3.1m worth of stock for ₹89.66 per share. It wasn't a huge sale, but it did reduce their holding by 19%. This does not instill confidence.

Check out our latest analysis for Indiabulls Real Estate

The Last 12 Months Of Insider Transactions At Indiabulls Real Estate

Notably, that recent sale by insider Kubeir Khera was not the only time they sold Indiabulls Real Estate shares this year. They previously made an even bigger sale of -₹13m worth of shares at a price of ₹76.74 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹99.80. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 47% of Kubeir Khera's stake.

In the last year Indiabulls Real Estate insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Indiabulls Real Estate

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.8% of Indiabulls Real Estate shares, worth about ₹4.2b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Indiabulls Real Estate Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Indiabulls Real Estate has 4 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.

Of course Indiabulls Real Estate 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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