Have Mindtree Limited (NSE:MINDTREE) Insiders Been Selling Their Stock?

Anyone interested in Mindtree Limited (NSE:MINDTREE) should probably be aware that a company insider, Suresh Gurumurthy, recently divested ₹7.8m worth of shares in the company, at an average price of ₹3,882 each. However, the silver lining is that the sale only reduced their total holding by 8.0%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Mindtree

The Last 12 Months Of Insider Transactions At Mindtree

Notably, that recent sale by insider Suresh Gurumurthy was not the only time they sold Mindtree shares this year. Earlier in the year, they fetched ₹4,181 per share in a -₹27m sale. So we know that an insider sold shares at around the present share price of ₹3,885. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid ₹4.8m for 1.20k shares. But insiders sold 22.31k shares worth ₹85m. Over the last year we saw more insider selling of Mindtree shares, than buying. The average sell price was around ₹3,805. It's not particularly great to see insiders were selling shares around current prices. But we don't put too much weight on the insider selling, since sellers could have personal reasons. 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!

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 Mindtree 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 Mindtree insiders own 5.0% of the company, worth about ₹32b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Mindtree Insiders?

The stark truth for Mindtree is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Mindtree 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mindtree. For example - Mindtree has 2 warning signs we think you should be aware of.

Of course Mindtree may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.