Did Westlife Development Limited (NSE:WESTLIFE) insiders sell their shares?

Investors may wish to note that an insider of Westlife Development Limited, Vinay Halambi, recently earned ₹3.9 million from the sale of shares, receiving an average price of ₹459. It may not be a huge sum, but it was 100% of their personal equity, so we find that a bit disheartening.

See our latest analysis for Westlife Development

The last 12 months of insider trading at Westlife Development

Notably, this recent sale by Vinay Halambi is the largest insider sale of Westlife Development shares we have seen in the past year. This means that even when the stock price was lower than the current price of ₹473, an insider wanted to cash out some shares. Generally, we consider it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. Please note, however, that sellers may have various reasons for selling, so we don’t know for sure what they think of the stock price. Note that this sale involved 100% of Vinay Halambi’s stake.

Westlife Development insiders did not buy any shares last year. The chart below shows insider trading (by companies and individuals) over the past year. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

NSEI: WESTLIFE Insider Trading Volume February 26, 2022

If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).

Does Westlife Development boast of high insider ownership?

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. Insiders own 9.3% of shares in Westlife Development, worth around ₹6.9 billion. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what do Westlife Development’s insider trading indicate?

An insider recently sold shares, but did not buy. Looking at the last twelve months, our data shows no insider buying. Although insiders hold a lot of stock in the company (which is good), our analysis of their dealings does not give us confidence in the company. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. In terms of investment risks, we have identified 2 warning signs with Westlife Development and understanding them should be part of your investment process.

But note: Westlife Development may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

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.

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.