CEO, MD & Additional Director Of Birlasoft Sold 100% Of Their Shares

We wouldn't blame Birlasoft Limited (NSE:BSOFT) shareholders if they were a little worried about the fact that Angan Guha, the CEO, MD & Additional Director recently netted about ₹48m selling shares at an average price of ₹642. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Birlasoft

The Last 12 Months Of Insider Transactions At Birlasoft

Over the last year, we can see that the biggest insider sale was by the insider, Roopinder Singh, for ₹51m worth of shares, at about ₹307 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹604. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 52% of Roopinder Singh's stake.

In the last year Birlasoft insiders didn't buy any company stock. 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!

I will like Birlasoft 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 Birlasoft Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.6% of Birlasoft shares, worth about ₹2.7b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Birlasoft Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Birlasoft is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Birlasoft and we suggest you have a look.

Of course Birlasoft 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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