The Chief Executive Officer of Kernex Microsystems (India) Limited (NSE:KERNEX), Kalidindi Raju, Just Sold 100% Of Their Holding

We'd be surprised if Kernex Microsystems (India) Limited (NSE:KERNEX) shareholders haven't noticed that the Chief Executive Officer, Kalidindi Raju, recently sold ₹11m worth of stock at ₹75.00 per share. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Kernex Microsystems (India)

Kernex Microsystems (India) Insider Transactions Over The Last Year

In fact, the recent sale by Kalidindi Raju was the biggest sale of Kernex Microsystems (India) shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of ₹73.40. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Kernex Microsystems (India) insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Kernex Microsystems (India) Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Kernex Microsystems (India) insiders own 56% of the company, currently worth about ₹506m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Kernex Microsystems (India) Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kernex Microsystems (India). In terms of investment risks, we've identified 4 warning signs with Kernex Microsystems (India) and understanding these should be part of your investment process.

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, but not derivative transactions.

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.

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