Coforge Additional Executive Director Gautam Samanta Sells 98% Of Holding

Some Coforge Limited (NSE:COFORGE) shareholders may be a little concerned to see that the Additional Executive Director, Gautam Samanta, recently sold a substantial ₹135m worth of stock at a price of ₹8,706 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 98% of their entire holding.

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The Last 12 Months Of Insider Transactions At Coforge

The CEO & Executive Director Sudhir Singh made the biggest insider purchase in the last 12 months. That single transaction was for ₹585m worth of shares at a price of ₹8,818 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹8,521). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Sudhir Singh was the only individual insider to buy shares in the last twelve months. Notably Sudhir Singh was also the biggest seller.

Over the last year we saw more insider selling of Coforge shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Coforge

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Coforge shares, worth about ₹3.8b. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Coforge Insiders?

It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. For example - Coforge has 1 warning sign we think you should be aware of.

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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.