Don't Ignore The Fact That This Insider Just Sold Some Shares In SpiceJet Limited (NSE:SPICEJET)

Investors may wish to note that the Chief Strategy Officer & Accountable Manager of SpiceJet Limited, G. Gupta, recently netted ₹1.7m from selling stock, receiving an average price of ₹83.40. On the bright side, that's just a small sale and only reduced their holding by 10.0%.

Check out our latest analysis for SpiceJet

SpiceJet Insider Transactions Over The Last Year

Notably, that recent sale by G. Gupta is the biggest insider sale of SpiceJet shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of ₹77.90. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

I will like SpiceJet 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

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. SpiceJet insiders own about ₹30b worth of shares (which is 64% 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.

So What Does This Data Suggest About SpiceJet Insiders?

An insider sold SpiceJet shares recently, but they didn't buy any. 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. To that end, you should learn about the 3 warning signs we've spotted with SpiceJet (including 1 which is a bit unpleasant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.
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