Trade Alert: Additional Executive Director Of Coforge Gautam Samanta Has Sold Stock

Some Coforge Limited (NSE:COFORGE) shareholders may be a little concerned to see that the Additional Executive Director, Gautam Samanta, recently sold a substantial ₹100m worth of stock at a price of ₹6,894 per share. That diminished their holding by a very significant 96%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Coforge

The Last 12 Months Of Insider Transactions At Coforge

In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, Sudhir Singh, sold ₹1.3b worth of shares at a price of ₹6,271 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹6,861. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 39% of Sudhir Singh's holding.

Coforge insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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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Does Coforge Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.7% of Coforge shares, worth about ₹3.1b. 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?

Insiders sold Coforge shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Coforge makes money, and is growing profits. 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. While it's good to be aware of 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. In terms of investment risks, we've identified 3 warning signs with Coforge and understanding these should be part of your investment process.

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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.