Trade Alert: Chief Financial Officer Of C. E. Info Systems Anuj Jain Has Sold Stock

Anyone interested in C. E. Info Systems Limited (NSE:MAPMYINDIA) should probably be aware that the Chief Financial Officer, Anuj Jain, recently divested ₹18m worth of shares in the company, at an average price of ₹2,126 each. In particular, we note that the sale equated to a 86% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for C. E. Info Systems

The Last 12 Months Of Insider Transactions At C. E. Info Systems

In the last twelve months, the biggest single sale by an insider was when the insider, P. Ranjan, sold ₹65m worth of shares at a price of ₹1,679 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹2,241. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 58% of P. Ranjan's holding.

Insiders in C. E. Info Systems didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like C. E. Info Systems better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does C. E. Info Systems Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. C. E. Info Systems insiders own about ₹65b worth of shares (which is 54% 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 Does This Data Suggest About C. E. Info Systems Insiders?

Insiders haven't bought C. E. Info Systems stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that C. E. Info Systems is growing earnings. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, C. E. Info Systems has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

But note: C. E. Info Systems 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com