Trade Alert: President of Healthcare & Lifesciences Of Firstsource Solutions Venkatgiri Vandali Has Sold Stock

We wouldn't blame Firstsource Solutions Limited (NSE:FSL) shareholders if they were a little worried about the fact that Venkatgiri Vandali, the President of Healthcare & Lifesciences recently netted about ₹86m selling shares at an average price of ₹326. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.

Check out our latest analysis for Firstsource Solutions

The Last 12 Months Of Insider Transactions At Firstsource Solutions

The insider, Vipul Khanna, made the biggest insider sale in the last 12 months. That single transaction was for ₹106m worth of shares at a price of ₹176 each. That means that an insider was selling shares at slightly below the current price (₹340). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 19% of Vipul Khanna's holding. Notably Vipul Khanna was also the biggest buyer, having purchased ₹12m worth of shares.

All up, insiders sold more shares in Firstsource Solutions than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Firstsource Solutions

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Firstsource Solutions insiders own about ₹1.2b worth of shares. That equates to 0.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Firstsource Solutions Tell Us?

Insiders haven't bought Firstsource Solutions stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Firstsource Solutions and we suggest you have a look.

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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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