Trade Alert: Chief People Officer & Member of Executive Board Of Birlasoft Arun Rao Has Sold Stock

We'd be surprised if Birlasoft Limited (NSE:BSOFT) shareholders haven't noticed that the Chief People Officer & Member of Executive Board, Arun Rao, recently sold ₹37m worth of stock at ₹577 per share. In particular, we note that the sale equated to a 56% reduction in their position size, which doesn't exactly instill confidence.

See our latest analysis for Birlasoft

The Last 12 Months Of Insider Transactions At Birlasoft

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Director, Angan Guha, sold ₹48m worth of shares at a price of ₹645 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is ₹557. So it is hard to draw any strong conclusion from it.

Insiders in Birlasoft 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. 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 Of Birlasoft

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. Birlasoft insiders own about ₹2.4b worth of shares. That equates to 1.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Birlasoft Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Birlasoft makes money, and is growing profits. 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. At Simply Wall St, we found 2 warning signs for Birlasoft that deserve your attention before buying any shares.

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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.