Trade Alert: Chief Operating Officer Of Campus Activewear Piyush Singh Has Sold Stock

Anyone interested in Campus Activewear Limited (NSE:CAMPUS) should probably be aware that the Chief Operating Officer, Piyush Singh, recently divested ₹37m worth of shares in the company, at an average price of ₹312 each. In particular, we note that the sale equated to a 81% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for Campus Activewear

Campus Activewear Insider Transactions Over The Last Year

Notably, that recent sale by Chief Operating Officer Piyush Singh was not the only time they sold Campus Activewear shares this year. They previously made an even bigger sale of -₹134m worth of shares at a price of ₹419 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹319. So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid ₹1.2m for 2.70k shares. On the other hand they divested 1.24m shares, for ₹500m. Over the last year we saw more insider selling of Campus Activewear shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Campus Activewear better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Campus Activewear Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. It's great to see that Campus Activewear insiders own 70% of the company, worth about ₹68b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Campus Activewear Tell Us?

Insiders sold Campus Activewear shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Campus Activewear is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Campus Activewear has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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.