Group CFO Pradumna Kanodia Just Sold A Bunch Of Shares In The Phoenix Mills Limited (NSE:PHOENIXLTD)

Anyone interested in The Phoenix Mills Limited (NSE:PHOENIXLTD) should probably be aware that the Group CFO, Pradumna Kanodia, recently divested ₹12m worth of shares in the company, at an average price of ₹660 each. In particular, we note that the sale equated to a 59% reduction in their position size, which doesn't exactly instill confidence.

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The Last 12 Months Of Insider Transactions At Phoenix Mills

In fact, the recent sale by Pradumna Kanodia was the biggest sale of Phoenix Mills shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹657. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Phoenix Mills insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Phoenix Mills insiders own 2.8% of the company, worth about ₹3.1b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Phoenix Mills Insider Transactions Indicate?

Insiders sold Phoenix Mills shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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