Don't Ignore The Fact That This Insider Just Sold Some Shares In The Phoenix Mills Limited (NSE:PHOENIXLTD)

We note that a The Phoenix Mills Limited (NSE:PHOENIXLTD) insider, Vidyasagar Pingali, recently sold ₹278k worth of stock for ₹694 per share. However we note that the sale only shrunk their holding by 4.2%.

View our latest analysis for Phoenix Mills

Phoenix Mills Insider Transactions Over The Last Year

The Group Head of Leasing, Manish Singh, made the biggest insider sale in the last 12 months. That single transaction was for ₹10m worth of shares at a price of ₹866 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹651. So it may not tell us anything about how insiders feel about the current share price.

In the last year Phoenix Mills 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Phoenix Mills

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.0% of Phoenix Mills shares, worth about ₹4.5b. 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 Do The Phoenix Mills Insider Transactions Indicate?

Insiders haven't bought Phoenix Mills stock in the last three months, but there was some selling. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Phoenix Mills.

But note: Phoenix Mills may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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