Have Insiders Sold Dev Information Technology Shares Recently?

Anyone interested in Dev Information Technology Limited (NSE:DEVIT) should probably be aware that the Founder, Jaiminbhai Shah, recently divested ₹32m worth of shares in the company, at an average price of ₹145 each. However, the silver lining is that the sale only reduced their total holding by 5.8%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Dev Information Technology

Dev Information Technology Insider Transactions Over The Last Year

In fact, the recent sale by Jaiminbhai Shah was the biggest sale of Dev Information Technology shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of ₹148, 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.

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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dev Information Technology insiders own about ₹2.3b worth of shares (which is 70% of the company). 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?

An insider sold Dev Information Technology shares recently, but they didn't buy any. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dev Information Technology. Be aware that Dev Information Technology is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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 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.