Have Insiders Sold L&T Technology Services Limited (NSE:LTTS) Shares Recently?

Simply Wall St
July 01, 2021
Source: Shutterstock

We wouldn't blame L&T Technology Services Limited (NSE:LTTS) shareholders if they were a little worried about the fact that Keshab Panda, the Non-Executive Director recently netted about ₹58m selling shares at an average price of ₹2,880. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

Check out our latest analysis for L&T Technology Services

The Last 12 Months Of Insider Transactions At L&T Technology Services

Notably, that recent sale by Keshab Panda is the biggest insider sale of L&T Technology Services shares that we've seen in the last year. That means that even when the share price was slightly below the current price of ₹2,893, 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 25% of Keshab Panda's stake.

Happily, we note that in the last year insiders paid ₹3.5m for 2.00k shares. But insiders sold 257.86k shares worth ₹573m. In total, L&T Technology Services insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:LTTS Insider Trading Volume July 2nd 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does L&T Technology Services Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. L&T Technology Services insiders own about ₹2.1b worth of shares. That equates to 0.7% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At L&T Technology Services Tell Us?

Insiders haven't bought L&T Technology Services 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 while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - L&T Technology Services has 2 warning signs we think you should be aware of.

Of course L&T Technology Services 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.

When trading L&T Technology Services or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.