MD & Chairman Dinesh Nandwana Sold A Bunch Of Shares In VL E-Governance & IT Solutions

We wouldn't blame VL E-Governance & IT Solutions Limited (NSE:VLEGOV) shareholders if they were a little worried about the fact that Dinesh Nandwana, the MD & Chairman recently netted about ₹243m selling shares at an average price of ₹125. That sale reduced their total holding by 49% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for VL E-Governance & IT Solutions

VL E-Governance & IT Solutions Insider Transactions Over The Last Year

Notably, that recent sale by Dinesh Nandwana is the biggest insider sale of VL E-Governance & IT Solutions shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹127. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 49% of Dinesh Nandwana's stake.

Dinesh Nandwana divested 4.94m shares over the last 12 months at an average price of ₹91.98. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. VL E-Governance & IT Solutions insiders own about ₹983m worth of shares. That equates to 7.3% of the company. 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 VL E-Governance & IT Solutions Insider Transactions Indicate?

An insider hasn't bought VL E-Governance & IT Solutions stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 5 warning signs for VL E-Governance & IT Solutions (of which 1 is a bit concerning!) you should know about.

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 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.