This Insider Has Just Sold Shares In InterGlobe Aviation Limited (NSE:INDIGO)

Some InterGlobe Aviation Limited (NSE:INDIGO) shareholders may be a little concerned to see that the Chief Aircraft Acquisition & Financing Officer, Riyaz Peer Mohamed, recently sold a substantial ₹245m worth of stock at a price of ₹1,785 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for InterGlobe Aviation

The Last 12 Months Of Insider Transactions At InterGlobe Aviation

In fact, the recent sale by Chief Aircraft Acquisition & Financing Officer Riyaz Peer Mohamed was not their only sale of InterGlobe Aviation shares this year. They previously made an even bigger sale of -₹457m worth of shares at a price of ₹1,747 per share. That means that an insider was selling shares at around the current price of ₹1,685. 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.

In the last year InterGlobe Aviation insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. InterGlobe Aviation insiders own about ₹154b worth of shares (which is 24% 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 InterGlobe Aviation 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that InterGlobe Aviation has 2 warning signs and it would be unwise to ignore these.

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.

If you’re looking to trade InterGlobe Aviation, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.