Have Firstsource Solutions Limited (NSE:FSL) Insiders Been Selling Their Stock?

February 14, 2022
  •  Updated
July 03, 2022
NSEI:FSL
Source: Shutterstock

We note that a Firstsource Solutions Limited (NSE:FSL) insider, Arun Tyagi, recently sold ₹2.9m worth of stock for ₹145 per share. While that isn't a lot of money, it was a substantial 99% of their holding, so certainly isn't a good sign.

View our latest analysis for Firstsource Solutions

Firstsource Solutions Insider Transactions Over The Last Year

The President & CFO, Dinesh Jain, made the biggest insider sale in the last 12 months. That single transaction was for ₹19m worth of shares at a price of ₹187 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of ₹144. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Firstsource Solutions didn't buy any shares in 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!

insider-trading-volume
NSEI:FSL Insider Trading Volume February 14th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Firstsource Solutions

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. Firstsource Solutions insiders own about ₹1.9b worth of shares. That equates to 1.9% 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 Do The Firstsource Solutions Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Firstsource Solutions makes money, and is growing profits. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Firstsource Solutions has 2 warning signs and it would be unwise to ignore these.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.