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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Security and Intelligence Services (India) Limited (NSE:SIS), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. 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 equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
View our latest analysis for Security and Intelligence Services (India)
The Last 12 Months Of Insider Transactions At Security and Intelligence Services (India)
Over the last year, we can see that the biggest insider sale was by Non Executive Director Uday Singh for ₹63m worth of shares, at about ₹790 per share. So what is clear is that an insider saw fit to sell at around the current price of ₹761. While their view may have changed since the sale, this is not a particularly positive fact. We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price.
Over the last year, we note insiders sold 206.72k shares worth ₹164m. In total, Security and Intelligence Services (India) insiders sold more than they bought over the last year. The sellers received a price of around ₹792, on average. It’s not ideal to see that insiders have sold at around the current price. But we don’t put too much weight on the insider selling, since sellers could have personal reasons. You can see the insider transactions (by 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!
I will like Security and Intelligence Services (India) better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Security and Intelligence Services (India) Insiders Are Selling The Stock
The last three months saw significant insider selling at Security and Intelligence Services (India). In total, insiders sold ₹116m worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.