Have Insiders Sold Cosmo First Shares Recently?

We wouldn't blame Cosmo First Limited (NSE:COSMOFIRST) shareholders if they were a little worried about the fact that Ashok Jaipuria, the Chairman & MD recently netted about ₹684m selling shares at an average price of ₹855. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.8%.

View our latest analysis for Cosmo First

The Last 12 Months Of Insider Transactions At Cosmo First

In fact, the recent sale by Ashok Jaipuria was the biggest sale of Cosmo First shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of ₹987, an insider wanted to cash in some shares. 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 7.8% of Ashok Jaipuria's stake.

Insiders in Cosmo First didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership Of Cosmo First

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Cosmo First insiders own about ₹9.6b worth of shares (which is 37% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Cosmo First Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cosmo First. When we did our research, we found 5 warning signs for Cosmo First (2 are significant!) that we believe deserve your full attention.

But note: Cosmo First 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 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.