Stock Analysis

Insiders Of Genesys International Retain ₹127m Of Investment Selling At Higher Prices

NSEI:GENESYS
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Even though Genesys International Corporation Limited (NSE:GENESYS) stock gained 11% last week, insiders who sold ₹127m worth of stock over the past year are probably better off. Selling at an average price of ₹421, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Genesys International

The Last 12 Months Of Insider Transactions At Genesys International

Over the last year, we can see that the biggest insider sale was by the insider, Sudha Ganapathy, for ₹61m worth of shares, at about ₹404 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹506. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 50% of Sudha Ganapathy's stake. Sudha Ganapathy was the only individual insider to sell over the last year.

Sudha Ganapathy ditched 300.34k shares over the year. The average price per share was ₹421. 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!

insider-trading-volume
NSEI:GENESYS Insider Trading Volume February 20th 2024

I will like Genesys International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Genesys International Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Genesys International shares. In total, insider Sudha Ganapathy dumped ₹127m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Genesys International insiders own 43% of the company, currently worth about ₹8.6b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Genesys International Insiders?

An insider hasn't bought Genesys International 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. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. You'd be interested to know, that we found 4 warning signs for Genesys International and we suggest you have a look.

But note: Genesys International 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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About NSEI:GENESYS

Genesys International

Provides geographical information services in India and internationally.

Solid track record with adequate balance sheet.

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