Don't Ignore The Fact That This Insider Just Sold Some Shares In Zen Technologies Limited (NSE:ZENTEC)

We wouldn't blame Zen Technologies Limited (NSE:ZENTEC) shareholders if they were a little worried about the fact that Tara Atluri, a company insider, recently netted about ₹138m selling shares at an average price of ₹76.47. That diminished their holding by a very significant 64%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Zen Technologies

The Last 12 Months Of Insider Transactions At Zen Technologies

In fact, the recent sale by Tara Atluri was the biggest sale of Zen Technologies shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹73.65. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Zen Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Zen Technologies 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. Zen Technologies insiders own about ₹3.5b worth of shares (which is 61% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Zen Technologies Insider Transactions Indicate?

An insider hasn't bought Zen Technologies stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Zen Technologies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 4 warning signs with Zen Technologies and understanding these should be part of your investment process.

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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