We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Indiabulls Ventures Limited (NSE:IBVENTURES).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Indiabulls Ventures
The Last 12 Months Of Insider Transactions At Indiabulls Ventures
In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Gagan Banga, sold ₹141m worth of shares at a price of ₹308 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹174. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid ₹201m for 713k shares. But insiders sold 1.5m shares worth ₹423m. All up, insiders sold more shares in Indiabulls Ventures than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Indiabulls Ventures better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Indiabulls Ventures Have Bought Stock Recently
At Indiabulls Ventures,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent ₹194m on shares. But insiders only sold shares worth ₹62m. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.