We wouldn't blame Bajaj Finance Limited (NSE:BAJFINANCE) shareholders if they were a little worried about the fact that Suresh Subramaniam, a company insider, recently netted about ₹233m selling shares at an average price of ₹4,033. That diminished their holding by a very significant 85%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Bajaj Finance

The Last 12 Months Of Insider Transactions At Bajaj Finance

Over the last year, we can see that the biggest insider sale was by the MD & Executive Director, Rajeev Jain, for ₹438m worth of shares, at about ₹2,609 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹4,028. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 47% of Rajeev Jain's holding.

In the last twelve months insiders purchased 4308 shares for ₹14m. But insiders sold 693905 shares worth ₹2.3b. In total, Bajaj Finance insiders sold more than they bought over the last year. You can see the insider transactions (by 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!

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

Insider Ownership of Bajaj Finance

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Bajaj Finance insiders own about ₹11b worth of shares (which is 0.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Bajaj Finance Insiders?

The insider sales have outweighed the insider buying, at Bajaj Finance, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Bajaj Finance is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Bajaj Finance.