Possible Bearish Signals With FSN E-Commerce Ventures Insiders Disposing Stock

Over the past year, many FSN E-Commerce Ventures Limited ( NSE:NYKAA ) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for FSN E-Commerce Ventures

FSN E-Commerce Ventures Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Sanjay Nayar, for ₹114m worth of shares, at about ₹142 per share. However, we would like to clarify that the stated transaction was part of a share transfer agreement, wherein  the Sanjay Nayar Family Trust distributed some shares to two of its beneficiaries, namely Adwaita Nayar Family Trust and Anchit Nayar Family Trust. It's important to note that this transaction does not represent a traditional sale in the open market.

Insiders in FSN E-Commerce Ventures didn't buy any shares in the last year. 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!

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

Insiders At FSN E-Commerce Ventures Have Sold Stock Recently

The last three months saw significant insider selling at FSN E-Commerce Ventures. In total, insiders dumped ₹336m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of FSN E-Commerce Ventures

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. FSN E-Commerce Ventures insiders own 59% of the company, currently worth about ₹295b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At FSN E-Commerce Ventures Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing FSN E-Commerce Ventures. In terms of investment risks, we've identified 2 warning signs with FSN E-Commerce Ventures and understanding them should be part of your investment process.

But note: FSN E-Commerce 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.