This Insider Has Just Sold Shares In Avantel

We wouldn't blame Avantel Limited (NSE:AVANTEL) shareholders if they were a little worried about the fact that Abburi Sarada, the CFO, Director of Finance & Accounts and Whole-Time Director recently netted about ₹53m selling shares at an average price of ₹118. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.0%.

We've discovered 3 warning signs about Avantel. View them for free.

Avantel Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman, Abburi Vidyasagar, for ₹230m worth of shares, at about ₹152 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹106. So it is hard to draw any strong conclusion from it.

Avantel 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!

See our latest analysis for Avantel

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Does Avantel Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Avantel insiders own about ₹11b worth of shares (which is 44% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Avantel Tell Us?

Insiders haven't bought Avantel stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Avantel is profitable and growing, we're not too worried by this. 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. 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 3 warning signs we've spotted with Avantel (including 1 which is significant).

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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.