Have Insiders Been Shopping for Tourism Finance Company of India Restricted (NSE:TFCILTD) Shares This 12 months?

It’s not uncommon for companies to do well in the years after insiders have bought stocks. Unfortunately, there are also plenty of examples of stock prices falling sharply after insiders have sold stocks. So before you buy or sell Tourism Finance Corporation by India Limited ((NSE: TFCILTD) You may want to know if any insiders bought or sold.

What is insider selling?

It is perfectly legal for company insiders, including board members, to buy and sell shares in a company. However, most countries require the company to disclose such transactions to the market.

Insider trading isn’t the most important thing when it comes to long-term investments. But we would also consider it foolish to ignore insider trading altogether. As Peter Lynch said, “Insiders could sell their stocks for a number of reasons, but they are buying them for only one thing: they think the price will go up”.

Check out our latest analysis for Tourism Finance Corporation of India

The last 12 months of insider trading with Tourism Finance Corporation of India

Non-executive non-independent director Koppara Thomas made the largest insider buy in the past 12 months. That single transaction involved shares valued at £ 46 million at a price of £ 38.14 each. Although the purchase was made at a significantly lower price than its most recent price (£ 54.15), we still think insider buying is positive. While this suggests that insiders are viewing the stock as undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Koppara Thomas has bought 2.60m shares in the past 12 months at an average price of £ 37.67. The following table shows the insider transactions (by companies and individuals) over the past year. If you click on the chart you will see all of the individual transactions including the stock price, the individual and the date!

NSEI: TFCILTD Insider Trading Volume April 13, 2021

There are many other companies that insiders buy stocks from. You probably do Not want to miss that free List of growing companies that insider buy.

Tourism Finance Corporation of India insider owned

Another way to test alignment between a company’s executives and other shareholders is to see how many stocks they own. A high level of insider responsibility often leads to corporate management taking greater account of the interests of shareholders. It appears that Tourism Finance Corporation of India insiders own 20% of the company, valued at around £ 941 million. This level of inside ownership is good, but not particularly noticeable. It certainly indicates a fair degree of alignment.

What Do Tourism Finance Corporation of India Insider Transactions Indicate?

The fact that there has been no insider trading by the Tourism Finance Corporation of India recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. Judging by their transactions and the high level of insider exposure, Tourism Finance Corporation of India insiders see the company’s future well. While we like to know what’s wrong with the insider’s property and transactions, we should also consider the risks a stock is exposed to before making any investment decision. To aid this, we discovered 3 warning signs (1 should not be ignored!) Things to Consider Before Buying Shares in Tourism Finance Corporation of India.

But note: Tourism Finance Corporation of India may not be the best stock to buy. So take a look at it 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 competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.

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