Chief Financial Officer Of Cigniti Technologies Sold 60% Of Their Shares

Anyone interested in Cigniti Technologies Limited (NSE:CIGNITITEC) should probably be aware that the Chief Financial Officer, Krishnan Venkatachary, recently divested ₹12m worth of shares in the company, at an average price of ₹1,346 each. In particular, we note that the sale equated to a 60% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Cigniti Technologies

The Last 12 Months Of Insider Transactions At Cigniti Technologies

The Director, Venkata Chakkilam, made the biggest insider sale in the last 12 months. That single transaction was for ₹69m worth of shares at a price of ₹1,157 each. That means that even when the share price was below the current price of ₹1,346, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.0% of Venkata Chakkilam's holding.

In the last year Cigniti Technologies insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Cigniti Technologies 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Cigniti Technologies insiders own 50% of the company, currently worth about ₹18b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Cigniti Technologies Tell Us?

An insider hasn't bought Cigniti Technologies stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cigniti Technologies. Every company has risks, and we've spotted 1 warning sign for Cigniti Technologies you should know about.

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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.