Trade Alert: Senior VP & CFO Of Cosmo First Neeraj Jain Has Sold Stock

Anyone interested in Cosmo First Limited (NSE:COSMOFIRST) should probably be aware that the Senior VP & CFO, Neeraj Jain, recently divested ₹14m worth of shares in the company, at an average price of ₹736 each. Equally important, that sale actually reduced their holding by a full 78% which hardly makes us feel bullish about the stock.

See our latest analysis for Cosmo First

Cosmo First Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Director of Corporate Affairs & Whole Time Director, Anil Jain, for ₹26m worth of shares, at about ₹910 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of ₹776. So it may not shed much light on insider confidence at current levels.

Insiders in Cosmo First didn't buy any shares in 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!

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Does Cosmo First 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. It's great to see that Cosmo First insiders own 45% of the company, worth about ₹9.2b. 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 Cosmo First Insiders?

An insider hasn't bought Cosmo First stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of 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. Be aware that Cosmo First is showing 5 warning signs in our investment analysis, and 2 of those shouldn't be ignored...

Of course Cosmo First may not be the best stock to buy. So you may wish to see this free collection of high quality 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.