Trigyn Technologies Insiders Made A Wise Decision By Selling ₹54m Worth Of Stock

While Trigyn Technologies Limited (NSE:TRIGYN) shareholders have enjoyed a good week with stock up 16%, they need remain vigilant. The fact that insiders chose to dispose of ₹54m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See 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 ₹25m worth of shares at a price of ₹127 each. That means that even when the share price was below the current price of ₹149, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 57% of Homiyar Panday's holding. Homiyar Panday was the only individual insider to sell shares in the last twelve months.

Homiyar Panday ditched 445.33k shares over the year. The average price per share was ₹121. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 7.6% of Trigyn Technologies shares, worth about ₹329m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Trigyn Technologies Insiders?

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. Be aware that Trigyn Technologies is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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 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.

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