Executive VP & Head of Africa Harish Lala Sold A Bunch Of Shares In Zensar Technologies

We'd be surprised if Zensar Technologies Limited (NSE:ZENSARTECH) shareholders haven't noticed that the Executive VP & Head of Africa, Harish Lala, recently sold ₹18m worth of stock at ₹613 per share. That sale was 29% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Zensar Technologies

Zensar Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & Head of Europe, Chaitanya Rajebahadur, for ₹25m worth of shares, at about ₹480 per share. That means that even when the share price was below the current price of ₹636, an insider wanted to cash in some shares. 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. We note that the biggest single sale was 100% of Chaitanya Rajebahadur's holding.

Zensar Technologies 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Zensar 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

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. It appears that Zensar Technologies insiders own 1.3% of the company, worth about ₹1.8b. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Zensar Technologies Tell Us?

An insider sold Zensar Technologies shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Zensar Technologies makes money, and is growing profits. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Zensar Technologies has 1 warning sign we think 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.

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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.