Some Genpact Limited (NYSE:G) shareholders may be a little concerned to see that the Global Business Leader of Hi-Tech, Patrick Cogny, recently sold a whopping US$877k worth of stock at a price of US$43.54 per share. That’s a big dump, and it decreased their holding size by 31%, which is notable but not too bad.
Check out our latest analysis for Genpact
Genpact Insider Transactions Over The Last Year
Notably, that recent sale by Patrick Cogny is the biggest insider sale of Genpact shares that we’ve seen in the last year. That means that even when the share price was slightly below the current price of US$43.94, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 31% of Patrick Cogny’s stake.
In the last year Genpact insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Genpact better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of Genpact shares, worth about US$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Genpact Insider Transactions Indicate?
Insiders sold Genpact shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Genpact is growing earnings. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Genpact, you should check out this free report on analyst forecasts for the company.
Of course Genpact 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, but not derivative transactions.
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