This Insider Has Just Sold Shares In R Systems International Limited (NSE:RSYSTEMS)

Investors may wish to note that the President & Senior Executive Director of R Systems International Limited, Baldev Singh, recently netted ₹412k from selling stock, receiving an average price of ₹118. It might not be a huge sale, but it did reduce their holding size 19%, hardly encouraging.

View our latest analysis for R Systems International

The Last 12 Months Of Insider Transactions At R Systems International

In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer of R Systems USA Operations, Mandeep Sodhi, sold ₹4.4m worth of shares at a price of ₹96.79 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹118. 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 only 7.7% of Mandeep Sodhi's holding.

In the last year R Systems International insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership of R Systems International

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. R Systems International insiders own 84% of the company, currently worth about ₹12b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At R Systems International Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since R Systems International 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for R Systems International (of which 1 doesn't sit too well with us!) you should know about.

But note: R Systems International 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, but not derivative transactions.

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