Senior Vice President of Enterprise Solutions Of Cambridge Technology Enterprises Sold 84% Of Their Shares

Investors may wish to note that the Senior Vice President of Enterprise Solutions of Cambridge Technology Enterprises Limited, Nitin Tyagi, recently netted ₹6.4m from selling stock, receiving an average price of ₹127. While that isn't a lot of money, it was a substantial 84% of their holding, so certainly isn't a good sign.

Check out our latest analysis for Cambridge Technology Enterprises

The Last 12 Months Of Insider Transactions At Cambridge Technology Enterprises

Notably, that recent sale by Nitin Tyagi is the biggest insider sale of Cambridge Technology Enterprises shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹127. 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. We note that the biggest single sale was 84% of Nitin Tyagi's holding.

In the last year Cambridge Technology Enterprises insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Cambridge Technology Enterprises 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.9% of Cambridge Technology Enterprises shares, worth about ₹223m, according to our data. 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.

What Might The Insider Transactions At Cambridge Technology Enterprises Tell Us?

An insider hasn't bought Cambridge Technology Enterprises stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 6 warning signs for Cambridge Technology Enterprises (of which 2 shouldn't be ignored!) you should know about.

Of course Cambridge Technology Enterprises may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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