Business Unit Head of Communications & Utilities Prabhakar Atla Just Sold A Bunch Of Shares In Cyient Limited (NSE:CYIENT)

We note that the Cyient Limited (NSE:CYIENT) Business Unit Head of Communications & Utilities, Prabhakar Atla, recently sold ₹4.1m worth of stock for ₹1,016 per share. While that isn't a lot of money, it was a substantial 81% of their holding, so certainly isn't a good sign.

See our latest analysis for Cyient

The Last 12 Months Of Insider Transactions At Cyient

Over the last year, we can see that the biggest insider sale was by the Senior VP & Global Business Head of Cyient Digital, Anand Parameswaran, for ₹26m worth of shares, at about ₹527 per share. That means that even when the share price was below the current price of ₹1,114, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 66% of Anand Parameswaran's stake.

Insiders in Cyient didn't buy any shares in 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cyient insiders own about ₹6.5b worth of shares. That equates to 5.3% of the company. 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 Does This Data Suggest About Cyient Insiders?

Insiders haven't bought Cyient 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. But since Cyient is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Cyient and we suggest you have a look.

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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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.
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