Don't Ignore The Fact That This Insider Just Sold Some Shares In Prozone Intu Properties Limited (NSE:PROZONINTU)

Simply Wall St
November 26, 2021
Source: Shutterstock

Investors may wish to note that an insider of Prozone Intu Properties Limited, Akhil Chaturvedi, recently netted ₹1.2m from selling stock, receiving an average price of ₹27.55. On the bright side, that's just a small sale and only reduced their holding by 2.5%.

View our latest analysis for Prozone Intu Properties

The Last 12 Months Of Insider Transactions At Prozone Intu Properties

In fact, the recent sale by insider Akhil Chaturvedi was not their only sale of Prozone Intu Properties shares this year. They previously made an even bigger sale of -₹1.9m worth of shares at a price of ₹21.61 per share. That means that even when the share price was below the current price of ₹26.25, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 4.5% of Akhil Chaturvedi's holding.

Akhil Chaturvedi sold a total of 454.98k shares over the year at an average price of ₹21.22. 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!

NSEI:PROZONINTU Insider Trading Volume November 27th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. Prozone Intu Properties insiders own about ₹1.3b worth of shares. That equates to 32% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Prozone Intu Properties Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Prozone Intu Properties (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

But note: Prozone Intu Properties 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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