Oracle Financial Services Software Insiders Sell ₹479m Of Stock, Possibly Signalling Caution

Many Oracle Financial Services Software Limited (NSE:OFSS) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Oracle Financial Services Software

Oracle Financial Services Software Insider Transactions Over The Last Year

The insider, Chaitanya Kamat, made the biggest insider sale in the last 12 months. That single transaction was for ₹59m worth of shares at a price of ₹7,331 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹11,267. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 5.1% of Chaitanya Kamat's stake.

Oracle Financial Services Software insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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: Most of them are flying under the radar).

Insiders At Oracle Financial Services Software Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Oracle Financial Services Software. In total, insiders sold ₹55m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Oracle Financial Services Software 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. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Oracle Financial Services Software shares, worth about ₹3.9b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Oracle Financial Services Software Insider Transactions Indicate?

Insiders haven't bought Oracle Financial Services Software stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Oracle Financial Services Software is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Oracle Financial Services Software. Case in point: We've spotted 2 warning signs for Oracle Financial Services Software you should be aware of.

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.

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

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.