This Insider Has Just Sold Shares In Tejas Networks Limited (NSE:TEJASNET)

We note that a Tejas Networks Limited (NSE:TEJASNET) insider, R. Murali, recently sold ₹5.3m worth of stock for ₹175 per share. It wasn't a huge sale, but it did reduce their holding by 14%. This does not instill confidence.

Check out our latest analysis for Tejas Networks

Tejas Networks Insider Transactions Over The Last Year

Notably, that recent sale by R. Murali is the biggest insider sale of Tejas Networks shares that we've seen in the last year. That means that an insider was selling shares at around the current price of ₹171. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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).

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. We usually like to see fairly high levels of insider ownership. It appears that Tejas Networks insiders own 12% of the company, worth about ₹2.0b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tejas Networks Insiders?

An insider hasn't bought Tejas Networks stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that Tejas Networks has 2 warning signs and it would be unwise to ignore them.

But note: Tejas Networks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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. 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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