CEO & Executive Director of Coforge Picks Up 28% More Stock

Coforge Limited (NSE:COFORGE) shareholders (or potential shareholders) will be happy to see that the CEO & Executive Director, Sudhir Singh, recently bought a whopping ₹585m worth of stock, at a price of ₹8,818. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 28%.

See our latest analysis for Coforge

Coforge Insider Transactions Over The Last Year

In fact, the recent purchase by CEO & Executive Director Sudhir Singh was not their only trade of Coforge shares this year. They previously made a sale of -₹1.3b worth of shares at a price of ₹6,271 per share. That means that even when the share price was below the current price of ₹8,996, an insider wanted to cash in some shares. 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 just 39% of Sudhir Singh's stake.

In total, Coforge insiders sold more than they bought over 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Coforge

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. It appears that Coforge insiders own 0.6% of the company, worth about ₹3.9b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Coforge Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Coforge, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Coforge is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Coforge.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.