Have InterGlobe Aviation Limited (NSE:INDIGO) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
June 15, 2021
NSEI:INDIGO

Anyone interested in InterGlobe Aviation Limited (NSE:INDIGO) should probably be aware that a company insider, Ashim Mittra, recently divested ₹9.1m worth of shares in the company, at an average price of ₹1,817 each. On the bright side, that sale was only 9.5% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for InterGlobe Aviation

InterGlobe Aviation Insider Transactions Over The Last Year

The Chief Aircraft Acquisition & Financing Officer, Riyaz Peer Mohamed, made the biggest insider sale in the last 12 months. That single transaction was for ₹457m worth of shares at a price of ₹1,747 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹1,790. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 15% of Riyaz Peer Mohamed's holding.

InterGlobe Aviation 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NSEI:INDIGO Insider Trading Volume June 16th 2021

I will like InterGlobe Aviation better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of InterGlobe Aviation

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. InterGlobe Aviation insiders own 24% of the company, currently worth about ₹163b 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.

So What Does This Data Suggest About InterGlobe Aviation Insiders?

Insiders sold InterGlobe Aviation 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 2 warning signs we've spotted with InterGlobe Aviation (including 1 which shouldn't be ignored).

But note: InterGlobe Aviation 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.

Promoted
If you decide to trade InterGlobe Aviation, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.


This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record.