Insiders at Trigyn Technologies Limited (NSE:TRIGYN) sold ₹52m worth of stock, a potential red flag that needs to be monitored

Despite a 13% gain in Trigyn Technologies Limited's (NSE:TRIGYN) stock price this week, shareholders shouldn't let up. Even though stock prices were relatively low, insiders elected to sell ₹52m worth of stock in the last year, which could indicate some expected downturn.

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.

Check out our latest analysis for Trigyn Technologies

The Last 12 Months Of Insider Transactions At Trigyn Technologies

The President of US Operations, Homiyar Panday, made the biggest insider sale in the last 12 months. That single transaction was for ₹10.0m worth of shares at a price of ₹109 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹148. 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. 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 16% of Homiyar Panday's stake. Homiyar Panday was the only individual insider to sell shares in the last twelve months.

Homiyar Panday divested 452.45k shares over the last 12 months at an average price of ₹114. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Trigyn Technologies 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

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. Insiders own 11% of Trigyn Technologies shares, worth about ₹484m, according to our data. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Trigyn Technologies Tell Us?

It doesn't really mean much that no insider has traded Trigyn Technologies shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Trigyn Technologies insider transactions don't fill us with confidence. 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. Case in point: We've spotted 2 warning signs for Trigyn Technologies you should be aware of.

Of course Trigyn Technologies 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.