Anyone interested in Info Edge (India) Limited (NSE:NAUKRI) should probably know that HR Director Sharmeen Khalid recently sold ₹14m of company shares at an average price of ₹4,039 each. The eyebrow-raising movement resulted in a 31% reduction in their participation.
Our analysis indicates that NAUKRI is potentially undervalued!
The last 12 months of insider trading at Info Edge (India)
The founder, Sanjeev Bikhchandani, has achieved the largest insider sale in the last 12 months. This single transaction was for ₹713 million shares at a price of ₹4,473 each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The good news is that this big sale was way above the current price of ₹3,854. So this may not shed much light on insider confidence at current levels.
Luckily, we note that last year insiders paid ₹14m for 2.87k shares. On the other hand, they sold 308,500 shares, for ₹1.4 billion. In total, Info Edge (India) insiders sold more than they bought over the past year. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
Insider ownership
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Insiders at Info Edge (India) own around ₹188 billion in shares (or 38% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.
What could insider trading at Info Edge (India) tell us?
Insiders recently sold shares of Info Edge (India), but did not buy any. Despite some insider buying, the longer-term picture doesn’t make us much more positive. The company enjoys strong insider ownership, but we are a little hesitant given the history of stock sales. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Example: we have identified 5 warning signs for Info Edge (India) you should be aware, and 2 of them don’t suit us too much.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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Find out if Info Edge (India) is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
