Healthcare News

Have Insiders Sold Aster DM Healthcare Limited (NSE:ASTERDM) Shares Recently?

Anyone interested in Aster DM Healthcare Limited (NSE:ASTERDM) should probably be aware that a company insider, Sharfulddeen Kandy, recently divested ₹9.0m worth of shares in the company, at an average price of ₹138 each. The eyebrow raising move amounted to a reduction of 43% in their holding.

View our latest analysis for Aster DM Healthcare

Aster DM Healthcare Insider Transactions Over The Last Year

The CEO of Aster Pharmacy, Jobilal Vavachan, made the biggest insider sale in the last 12 months. That single transaction was for ₹17m worth of shares at a price of ₹171 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. It’s of some comfort that this sale was conducted at a price well above the current share price, which is ₹136. So it may not shed much light on insider confidence at current levels.

In total, Aster DM Healthcare insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NSEI:ASTERDM Insider Trading Volume April 1st 2021

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Does Aster DM Healthcare Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Aster DM Healthcare insiders own about ₹3.5b worth of shares. That equates to 5.2% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Aster DM Healthcare Tell Us?

An insider sold stock recently, but they haven’t been buying. Zooming out, the longer term picture doesn’t give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we’ve spotted with Aster DM Healthcare (including 1 which can’t be ignored).

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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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. 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.
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