Investors may wish to note that an insider of Aavas Financiers Limited, Harshit Chhabra, recently netted ₹3.4m from selling stock, receiving an average price of ₹1,572. It wasn't a huge sale, but it did reduce their holding by 43%. This does not instill confidence.

See our latest analysis for Aavas Financiers

The Last 12 Months Of Insider Transactions At Aavas Financiers

In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Whole Time Director, Sushil Agarwal, sold ₹331m worth of shares at a price of ₹1,407 per share. That means that an insider was selling shares at slightly below the current price (₹1,540). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 7.3% of Sushil Agarwal's stake.

In total, Aavas Financiers insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Aavas Financiers 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Aavas Financiers insiders own 7.1% of the company, currently worth about ₹8.7b 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 Aavas Financiers Insiders?

Insiders sold Aavas Financiers shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Aavas Financiers makes money, and is growing profits. 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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.