Chief Information Officer Manoj Shah Sold A Bunch Of Shares In Allied Digital Services

We'd be surprised if Allied Digital Services Limited (NSE:ADSL) shareholders haven't noticed that the Chief Information Officer, Manoj Shah, recently sold ₹10m worth of stock at ₹294 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

View our latest analysis for Allied Digital Services

Allied Digital Services Insider Transactions Over The Last Year

Notably, that recent sale by Manoj Shah is the biggest insider sale of Allied Digital Services shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (₹301). 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. We note that the biggest single sale was 100% of Manoj Shah's holding.

Insiders in Allied Digital Services 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!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Allied Digital Services insiders own 53% of the company, currently worth about ₹8.8b based on the recent share price. 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 Does This Data Suggest About Allied Digital Services Insiders?

Insiders sold Allied Digital Services shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Allied Digital Services you should be aware of, and 1 of these can't be ignored.

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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.