Have Campus Activewear Limited (NSE:CAMPUS) Insiders Been Selling Their Stock?

We'd be surprised if Campus Activewear Limited (NSE:CAMPUS) shareholders haven't noticed that the Chief Strategy Officer, Piyush Singh, recently sold ₹35m worth of stock at ₹520 per share. That sale was 13% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Campus Activewear

The Last 12 Months Of Insider Transactions At Campus Activewear

Notably, that recent sale by Piyush Singh is the biggest insider sale of Campus Activewear shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of ₹554. 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.

In the last twelve months insiders purchased 700.00 shares for ₹326k. But insiders sold 187.95k shares worth ₹88m. In total, Campus Activewear insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Campus Activewear

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Campus Activewear insiders own about ₹119b worth of shares (which is 70% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Campus Activewear Insiders?

The stark truth for Campus Activewear is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Campus Activewear is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 that end, you should learn about the 2 warning signs we've spotted with Campus Activewear (including 1 which doesn't sit too well with us).

But note: Campus Activewear 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, but not derivative transactions.

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

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.