Investors who take an interest in Indiabulls Ventures Limited (NSE:IBVENTURES) should definitely note that insider Prasenjeet Mukherjee recently paid ₹230 per share to buy ₹11m worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 7.4%.

See 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. The good news is that this large sale was at well above current price of ₹106. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid ₹207m for 775769 shares. On the other hand they divested 1711684 shares, for ₹464m. Over the last year we saw more insider selling of Indiabulls Ventures shares, than buying. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Indiabulls Ventures Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Indiabulls Ventures insiders own about ₹7.8b worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Indiabulls Ventures Insider Transactions Indicate?

The stark truth for Indiabulls Ventures is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Indiabulls Ventures is profitable and growing, we're not too worried by this. 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. Of course, the future is what matters most. So if you are interested in Indiabulls Ventures, you should check out this free report on analyst forecasts for the company.

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.