Insiders are probably glad they sold their shares in CyberTech Systems and Software Limited (NSE:CYBERTECH) after 10% drop

Insiders seem to have made the most of their holdings by selling ₹33m worth of CyberTech Systems and Software Limited (NSE:CYBERTECH) stock at an average sell price of ₹179 during the past year. The company's market valuation decreased by ₹552m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for CyberTech Systems and Software

CyberTech Systems and Software Insider Transactions Over The Last Year

The Executive Director, Ramasubramanian Sankaran, made the biggest insider sale in the last 12 months. That single transaction was for ₹12m worth of shares at a price of ₹172 each. So we know that an insider sold shares at around the present share price of ₹171. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year CyberTech Systems and Software insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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CyberTech Systems and Software Insiders Are Selling The Stock

The last three months saw significant insider selling at CyberTech Systems and Software. In total, Executive Director Ramasubramanian Sankaran dumped ₹6.8m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

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. CyberTech Systems and Software insiders own about ₹1.9b worth of shares. That equates to 40% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About CyberTech Systems and Software Insiders?

An insider hasn't bought CyberTech Systems and Software stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CyberTech Systems and Software. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of CyberTech Systems and Software.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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