Zensar Technologies Insiders Sold ₹55m Of Shares Suggesting Hesitancy

Zensar Technologies Limited (NSE:ZENSARTECH) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Zensar Technologies

Zensar Technologies Insider Transactions Over The Last Year

The Executive VP and Head of Africa of Hi-tech Engineering & Africa, Harish Lala, made the biggest insider sale in the last 12 months. That single transaction was for ₹18m worth of shares at a price of ₹613 each. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹769. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 29% of Harish Lala's holding.

Zensar Technologies insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Zensar Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Zensar Technologies Have Sold Stock Recently

The last three months saw significant insider selling at Zensar Technologies. In total, insider Sasha Azar sold ₹8.6m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. We usually like to see fairly high levels of insider ownership. Insiders own 1.2% of Zensar Technologies shares, worth about ₹2.2b. 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 even if we look at the last year, we didn't see any purchases. But it is good to see that Zensar Technologies is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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