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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. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in The Karur Vysya Bank Limited (NSE:KARURVYSYA).
What Is Insider Buying?
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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for Karur Vysya Bank
Karur Vysya Bank Insider Transactions Over The Last Year
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In total, Karur Vysya Bank insiders sold more than they bought over the last year. They sold for an average price of about ₹84.77. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (₹68.70), so it probably doesn’t tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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 Karur Vysya Bank better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Karur Vysya Bank Insiders Are Selling The Stock
The last three months saw significant insider selling at Karur Vysya Bank. Specifically, insiders ditched ₹28m 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.
Does Karur Vysya Bank Boast High Insider Ownership?
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. Insiders own 7.9% of Karur Vysya Bank shares, worth about ₹4.3b. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.