Insiders Sold Cambridge Technology Enterprises At ₹120, Meanwhile Stock Sits Near ₹81.64

Even though Cambridge Technology Enterprises Limited (NSE:CTE) has fallen by 14% over the past week , insiders who sold ₹12m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of ₹120 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Cambridge Technology Enterprises

Cambridge Technology Enterprises Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Operations Officer of Cambridge Technology Inc, Nitin Tyagi, sold ₹6.4m worth of shares at a price of ₹127 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹81.64). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Cambridge Technology Enterprises didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Cambridge Technology Enterprises Have Sold Stock Recently

We have seen a bit of insider selling at Cambridge Technology Enterprises, over the last three months. Senior Vice President of Delivery - Cambridge Technology Inc. Sudip Kar only netted ₹1.4m selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Cambridge Technology Enterprises insiders own 10% of the company, worth about ₹161m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Cambridge Technology Enterprises Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cambridge Technology Enterprises. When we did our research, we found 3 warning signs for Cambridge Technology Enterprises (2 can't be ignored!) that we believe deserve your full attention.

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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.