360 One Wam Insiders Sold ₹5.1b Of Shares Suggesting Hesitancy

In the last year, many 360 One Wam Limited (NSE:360ONE) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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360 One Wam Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Shaji Devakar, sold ₹373m worth of shares at a price of ₹920 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹1,066. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 37% of Shaji Devakar's holding.

In the last twelve months insiders purchased 11.00k shares for ₹11m. But they sold 5.00m shares for ₹5.1b. In total, 360 One Wam insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for 360 One Wam

I will like 360 One Wam better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At 360 One Wam Have Sold Stock Recently

The last quarter saw substantial insider selling of 360 One Wam shares. In total, insider Rama Biyani dumped ₹17m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does 360 One Wam 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. We usually like to see fairly high levels of insider ownership. 360 One Wam insiders own about ₹50b worth of shares (which is 12% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The 360 One Wam Insider Transactions Indicate?

An insider hasn't bought 360 One Wam stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since 360 One Wam is profitable and growing, we're not too worried by this. 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for 360 One Wam (of which 2 are a bit unpleasant!) you should know about.

Of course 360 One Wam may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.