Director Venkata Chakkilam Sold A Bunch Of Shares In Cigniti Technologies

Some Cigniti Technologies Limited (NSE:CIGNITITEC) shareholders may be a little concerned to see that the Director, Venkata Chakkilam, recently sold a substantial ₹1.9b worth of stock at a price of ₹1,398 per share. That's a big disposal, and it decreased their holding size by 49%, which is notable but not too bad.

Check out our latest analysis for Cigniti Technologies

Cigniti Technologies Insider Transactions Over The Last Year

In fact, the recent sale by Venkata Chakkilam was the biggest sale of Cigniti Technologies shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹1,357. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Cigniti Technologies 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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cigniti Technologies insiders own 32% of the company, currently worth about ₹12b 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.

So What Do The Cigniti Technologies Insider Transactions Indicate?

Insiders haven't bought Cigniti Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Cigniti Technologies.

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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.

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