U.S. Markets open in 3 hrs 13 mins

Have JM Financial Limited (NSE:JMFINANCIL) Insiders Been Selling Their Stock?

Simply Wall St

Investors may wish to note that an insider of JM Financial Limited, Bhanu Katoch, recently netted ₹1.5m from selling stock, receiving an average price of ₹82.50. It wasn't a huge sale, but it did reduce their holding by 15%. This does not instill confidence.

View our latest analysis for JM Financial

The Last 12 Months Of Insider Transactions At JM Financial

insider Karan Uberoi made the biggest insider purchase in the last 12 months. That single transaction was for ₹18m worth of shares at a price of ₹90.05 each. That means that even when the share price was higher than ₹87.70 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 1012000 shares for ₹84m. But they sold 720651 for ₹64m. Overall, JM Financial insiders were net buyers last year. 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!

NSEI:JMFINANCIL Recent Insider Trading, November 10th 2019

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does JM Financial 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. JM Financial insiders own about ₹18b worth of shares (which is 25% 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.

What Might The Insider Transactions At JM Financial Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about JM Financial. One for the watchlist, at least! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for JM Financial.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.