Insiders Who Sold BF Utilities Missed Out On 11% Stock Increase

Despite the fact that BF Utilities Limited (NSE:BFUTILITIE) stock rose 11% last week, insiders who sold ₹4.8m worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of ₹957, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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BF Utilities Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Ashok Kheny, sold ₹4.8m worth of shares at a price of ₹957 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹646. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Ashok Kheny.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for BF Utilities

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Does BF Utilities 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests BF Utilities insiders own 1.2% of the company, worth about ₹295m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

What Might The Insider Transactions At BF Utilities Tell Us?

It doesn't really mean much that no insider has traded BF Utilities shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the BF Utilities insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing BF Utilities. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of BF Utilities.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.