CL Educate Insiders Miss 13% Gain After Offloading Stock

CL Educate Limited's (NSE:CLEDUCATE) stock rose 13% last week, but insiders who sold ₹21m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of ₹117, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 4 warning signs investors should be aware of before investing in CL Educate. Read for free now.

The Last 12 Months Of Insider Transactions At CL Educate

The insider, Sujit Bhattacharyya, made the biggest insider sale in the last 12 months. That single transaction was for ₹8.4m worth of shares at a price of ₹116 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹92.31. So it is hard to draw any strong conclusion from it.

In total, CL Educate 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!

Check out our latest analysis for CL Educate

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Have CL Educate Insiders Traded Recently?

We've only seen a tiny insider purchase valued at ₹353k, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Does CL Educate 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. I reckon it's a good sign if insiders own a significant number of shares in the company. CL Educate insiders own about ₹2.3b worth of shares (which is 46% 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 Do The CL Educate Insider Transactions Indicate?

The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The recent buying by an insider , along with high insider ownership, suggest that CL Educate insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for CL Educate you should be aware of.

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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