This Insider Has Just Sold Shares In Cigniti Technologies Limited (NSE:CIGNITITEC)

By
Simply Wall St
Published
February 25, 2022
NSEI:CIGNITITEC
Source: Shutterstock

We note that the Cigniti Technologies Limited (NSE:CIGNITITEC) Company Secretary & Compliance Officer, A. Vasudha, recently sold ₹2.1m worth of stock for ₹520 per share. It wasn't a huge sale, but it did reduce their holding by 16%. This does not instill confidence.

See our latest analysis for Cigniti Technologies

The Last 12 Months Of Insider Transactions At Cigniti Technologies

In the last twelve months, the biggest single purchase by an insider was when insider Urmila Markili bought ₹26m worth of shares at a price of ₹612 per share. That means that even when the share price was higher than ₹513 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 78.80k shares for ₹48m. But insiders sold 30.00k shares worth ₹17m. Overall, Cigniti Technologies insiders were net buyers during 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!

insider-trading-volume
NSEI:CIGNITITEC Insider Trading Volume February 25th 2022

Cigniti Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. We usually like to see fairly high levels of insider ownership. It's great to see that Cigniti Technologies insiders own 57% of the company, worth about ₹8.3b. 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 Does This Data Suggest About Cigniti Technologies Insiders?

An insider sold Cigniti Technologies shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. While we like knowing 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. For example - Cigniti Technologies has 2 warning signs we think you should be aware of.

But note: Cigniti Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.