Have Insiders Sold Majesco Limited (NSE:MAJESCO) Shares Recently?

We wouldn't blame Majesco Limited (NSE:MAJESCO) shareholders if they were a little worried about the fact that Farid Kazani, a company insider, recently netted about ₹95m selling shares at an average price of ₹979. That sale reduced their total holding by 37% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Majesco

The Last 12 Months Of Insider Transactions At Majesco

In fact, the recent sale by Farid Kazani was the biggest sale of Majesco 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 ₹981, 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. This single sale was just 37% of Farid Kazani's stake.

Over the last year, we can see that insiders have bought 14.23k shares worth ₹4.1m. But insiders sold 392.11k shares worth ₹363m. In total, Majesco insiders sold more than they bought over the last year. The average sell price was around ₹925. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Majesco Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Majesco insiders own about ₹12b worth of shares (which is 39% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Majesco Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Majesco is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, Majesco has 4 warning signs (and 1 which is a bit concerning) we think you should know about.

But note: Majesco 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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