Are Insiders Selling TeamLease Services Limited (NSE:TEAMLEASE) Stock?

It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in TeamLease Services Limited (NSE:TEAMLEASE).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for TeamLease Services

The Last 12 Months Of Insider Transactions At TeamLease Services

In the last twelve months, the biggest single sale by an insider was when the insider, Mohitkaran Gupta, sold ₹5.8m worth of shares at a price of ₹2,379 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹2,382. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 45% of Mohitkaran Gupta's holding.

In the last year TeamLease Services insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

TeamLease Services Insiders Are Selling The Stock

We have seen a bit of insider selling at TeamLease Services, over the last three months. Head of Sales Engineering & Industrial Sudeep Sen sold just ₹1.3m worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership of TeamLease Services

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Based on our data, TeamLease Services insiders have about 0.3% of the stock, worth approximately ₹118m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At TeamLease Services Tell Us?

An insider sold TeamLease Services shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of TeamLease Services.

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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