Stock Analysis

Don't Ignore The Insider Selling In Heads UP Ventures

NSEI:HEADSUP
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Investors may wish to note that an insider of Heads UP Ventures Limited, Biharilal Mandhana, recently netted ₹6.6m from selling stock, receiving an average price of ₹15.91. While that isn't a lot of money, it was a substantial 81% of their holding, so certainly isn't a good sign.

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Heads UP Ventures Insider Transactions Over The Last Year

Notably, that recent sale by Biharilal Mandhana is the biggest insider sale of Heads UP Ventures shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹15.75. 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.

Heads UP Ventures insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:HEADSUP Insider Trading Volume January 4th 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Heads UP Ventures

Many investors like to check how much of a company is owned by 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 Heads UP Ventures insiders own 30% of the company, worth about ₹105m. 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 Heads UP Ventures Insider Transactions Indicate?

Insiders sold Heads UP Ventures shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To that end, you should learn about the 5 warning signs we've spotted with Heads UP Ventures (including 3 which are a bit unpleasant).

But note: Heads UP Ventures 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.