Have Majesco Limited (NSE:MAJESCO) Insiders Been Selling Their Stock?

Investors may wish to note that an insider of Majesco Limited, Niraj Balkrishna Trivedi, recently netted ₹4.5m from selling stock, receiving an average price of ₹826. That might not be a huge sum but it was 59% of their personal holding, so we find it a little discouraging.

See our latest analysis for Majesco

Majesco Insider Transactions Over The Last Year

Notably, that recent sale by Niraj Balkrishna Trivedi is the biggest insider sale of Majesco shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹826. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid ₹4.1m for 14.23k shares. But insiders sold 9.50k shares worth ₹7.8m. All up, insiders sold more shares in Majesco than they bought, over the last year. They sold for an average price of about ₹817. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of Majesco

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Majesco insiders own about ₹11b worth of shares (which is 44% 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 Majesco Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Majesco stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Majesco.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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