Have Insiders Sold GVP Infotech Shares Recently?

We'd be surprised if GVP Infotech Limited (NSE:GVPTECH) shareholders haven't noticed that the Non-Executive Director, Dhaval Mistry, recently sold ₹23m worth of stock at ₹11.42 per share. On the bright side, that sale was only 1.4% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for GVP Infotech

The Last 12 Months Of Insider Transactions At GVP Infotech

In fact, the recent sale by Dhaval Mistry was the biggest sale of GVP Infotech shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of ₹11.46. 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. 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 1.4% of Dhaval Mistry's stake.

Dhaval Mistry sold a total of 2.35m shares over the year at an average price of ₹11.29. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does GVP Infotech Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. GVP Infotech insiders own about ₹1.6b worth of shares (which is 88% 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.

So What Do The GVP Infotech Insider Transactions Indicate?

An insider sold GVP Infotech shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. 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. When we did our research, we found 5 warning signs for GVP Infotech (1 shouldn't be ignored!) that we believe deserve your full attention.

But note: GVP Infotech 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.