For Firstsource Solutions Insiders, Selling ₹422m Of Shares Was A Smart Move

Despite a 19% gain in Firstsource Solutions Limited's (NSE:FSL) stock price this week, shareholders shouldn't let up. The fact that insiders chose to dispose of ₹422m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We check all companies for important risks. See what we found for Firstsource Solutions in our free report.

The Last 12 Months Of Insider Transactions At Firstsource Solutions

The Chief Sales Transformation Officer and Head of Healthcare & Lifesciences, Venkatgiri Vandali, made the biggest insider sale in the last 12 months. That single transaction was for ₹86m worth of shares at a price of ₹380 each. That means that an insider was selling shares at around the current price of ₹375. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Firstsource Solutions didn't buy any shares in the last year. 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!

Check out our latest analysis for Firstsource Solutions

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

Does Firstsource Solutions Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Firstsource Solutions insiders own 0.4% of the company, worth about ₹1.1b. 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 Firstsource Solutions Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Firstsource Solutions shares in the last quarter. While we feel good about high insider ownership of Firstsource Solutions, we can't say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Firstsource Solutions, you should check out this free report on analyst forecasts for the company.

But note: Firstsource Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.