Have Insiders Sold Majesco Limited (NSE:MAJESCO) Shares Recently?

We'd be surprised if Majesco Limited (NSE:MAJESCO) shareholders haven't noticed that an insider, Sudhakar Ram, recently sold ₹22m worth of stock at ₹878 per share. However, the silver lining is that the sale only reduced their total holding by 1.5%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Majesco

Majesco Insider Transactions Over The Last Year

In fact, the recent sale by Sudhakar Ram was the biggest sale of Majesco shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (₹885). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.5%of Sudhakar Ram's holding.

In the last twelve months insiders purchased 14.23k shares for ₹4.1m. But they sold 46.36k shares for ₹39m. In total, Majesco insiders sold more than they bought over the last year. The sellers received a price of around ₹852, on average. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Majesco insiders own 46% of the company, currently worth about ₹12b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Majesco Tell Us?

The stark truth for Majesco is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Majesco makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Majesco. Our analysis shows 5 warning signs for Majesco (1 can't be ignored!) and we strongly recommend you look at these before investing.

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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