Have Mastek Insiders Been Selling Stock?

We'd be surprised if Mastek Limited (NSE:MASTEK) shareholders haven't noticed that an insider, Yashodhar Bhinde, recently sold ₹24m worth of stock at ₹2,382 per share. On the bright side, that sale was only 4.8% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Mastek

Mastek Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Divya Raman for ₹183m worth of shares, at about ₹1,856 per share. Even though the purchase was made at a significantly lower price than the recent price (₹2,425), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 337.60k shares worth ₹630m. But insiders sold 187.54k shares worth ₹382m. In total, Mastek insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Mastek is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Mastek

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Mastek insiders own 52% of the company, currently worth about ₹39b 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.

What Might The Insider Transactions At Mastek Tell Us?

Unfortunately, there has been more insider selling of Mastek stock, than buying, in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Mastek has 2 warning signs and it would be unwise to ignore them.

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 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.