We note that the HDFC Life Insurance Company Limited (NSE:HDFCLIFE) Head of Audit & Risk Management, Khushru Sidhwa, recently sold ₹6.0m worth of stock for ₹603 per share. On the bright side, that’s just a small sale and only reduced their holding by 4.1%.
The Last 12 Months Of Insider Transactions At HDFC Life Insurance
Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Vibha Padalkar, for ₹174m worth of shares, at about ₹742 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of ₹603. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of HDFC Life Insurance shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of HDFC Life Insurance shares, worth about ₹5.0b. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The HDFC Life Insurance Insider Transactions Indicate?
Insiders sold HDFC Life Insurance shares recently, but they didn’t buy any. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. While conducting our analysis, we found that HDFC Life Insurance has 2 warning signs and it would be unwise to ignore these.
But note: HDFC Life Insurance may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.