Founder Of Dev Information Technology Sold 41% Of Their Shares

Anyone interested in Dev Information Technology Limited (NSE:DEVIT) should probably be aware that the Founder, Jaiminbhai Shah, recently divested ₹17m worth of shares in the company, at an average price of ₹154 each. That sale was 41% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Dev Information Technology

Dev Information Technology Insider Transactions Over The Last Year

In fact, the recent sale by Founder Jaiminbhai Shah was not their only sale of Dev Information Technology shares this year. They previously made an even bigger sale of -₹32m worth of shares at a price of ₹147 per share. That means that even when the share price was slightly below the current price of ₹150, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was only 5.8% of Jaiminbhai Shah's holding.

Insiders in Dev Information Technology 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Dev Information Technology better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Dev Information Technology

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. It's great to see that Dev Information Technology insiders own 53% of the company, worth about ₹1.8b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Dev Information Technology Tell Us?

Insiders haven't bought Dev Information Technology 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 Dev Information Technology is profitable and growing, we're not too worried by this. 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. For example, Dev Information Technology has 5 warning signs (and 1 which is significant) we think you should know about.

Of course Dev Information Technology 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.