Have Dev Information Technology Insiders Been Selling Stock?

Anyone interested in Dev Information Technology Limited (NSE:DEVIT) should probably be aware that the Founder, Jaiminbhai Shah, recently divested ₹38m worth of shares in the company, at an average price of ₹174 each. However, the silver lining is that the sale only reduced their total holding by 6.3%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Dev Information Technology

The Last 12 Months Of Insider Transactions At Dev Information Technology

Notably, that recent sale by Jaiminbhai Shah is the biggest insider sale of Dev Information Technology shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹165. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Dev Information Technology insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Dev Information Technology

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Dev Information Technology insiders own about ₹1.5b worth of shares. That equates to 39% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

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

An insider sold Dev Information Technology shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Dev Information Technology is growing earnings. 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. Case in point: We've spotted 5 warning signs for Dev Information Technology you should be aware of, and 1 of them can't be ignored.

But note: Dev Information Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.