Don’t Ignore The Fact That This Insider Just Sold Some Shares In ICICI Lombard General Insurance Company Limited (NSE:ICICIGI)

Investors should note that an insider of ICICI Lombard General Insurance Company Limited, Alok Shukla, recently realized ₹5.0M from the sale of shares, realizing an average price of ₹1,140. While that’s not a lot of money, it was a respectable 100% of their ownership, so it’s certainly not a good sign.

The past 12 months of insider transactions at ICICI Lombard General Insurance

Insider Sumit Kapoor made the largest insider buy in 12 months. This single transaction involved shares worth ₹27 million at a price of ₹1,356 per share. This means that even if the share price was higher than £1,145 (current price), an insider wanted to buy shares. Their view may have changed since then, but at least it shows they were optimistic at the time. In our view, the price an insider pays for shares is very important. Generally, we notice when insiders have bought shares above the current price, as this indicates they believed the shares were worth buying, even at a higher price. Sumit Kapoor in particular was also the best seller.

Insiders bought 21,90,000 shares for £29m in the last 12 months. On the other hand, they sold 61,30k shares for £82m. All in all, insiders have sold more ICICI Lombard General Insurance shares than they have bought over the past year. You can see insider transactions (of companies and individuals) over the past year in the chart below. If you click on the chart you will see all the individual transactions including the stock price, the individual and the date!

Insider Trading Volume
NSEI:ICICIGI Insider Trading Volume Oct 9, 2022

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Insider Property

For a common shareholder, it’s worth checking how many shares are held by company insiders. We usually like to see a fairly high level of inside ownership. It appears that ICICI Lombard General Insurance insiders own 0.4% of the company, valued at around £2.1bn. This level of insider ownership is good, but close to being particularly outstanding. It certainly suggests a reasonable level of alignment.

So what does this data say about ICICI Lombard General Insurance insiders?

Unfortunately, there have been more insider sales of ICICI Lombard General Insurance stock than purchases over the past three months. Zooming out, the longer-term picture doesn’t give us much comfort. But it’s good to see ICICI Lombard General Insurance’s revenue growing. While insiders own a lot of the company’s stock (which is good), our analysis of their transactions doesn’t give us confidence in the company. So while it’s helpful to know what insiders are doing in relation to buying or selling, it’s also helpful to know the risks a particular company faces. You would be interested in what we found 2 warning signs for ICICI Lombard General Insurance and we encourage you to take a look.

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For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.

This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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find out if ICICI Lombard General Insurance may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

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