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 Girija Ram, a company insider, recently netted about ₹564m selling shares at an average price of ₹966. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

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Majesco Insider Transactions Over The Last Year

Notably, that recent sale by Girija Ram is the biggest insider sale of Majesco shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (₹12.20). So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 14.23k shares worth ₹4.1m. But they sold 1.52m shares for ₹1.5b. Over the last year we saw more insider selling of Majesco shares, than buying. The average sell price was around ₹958. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (₹12.20), so it probably doesn't tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Majesco Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Majesco insiders own 38% of the company, worth about ₹11b. 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 Majesco Insider Transactions Indicate?

Insiders sold Majesco shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Majesco is growing earnings. 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 Majesco. For example, Majesco has 5 warning signs (and 1 which can't be ignored) we think you should know about.

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, but not derivative transactions.

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