Trade Alert: Senior VP Of Genpact Anil Nanduru Has Sold Stock

We wouldn't blame Genpact Limited (NYSE:G) shareholders if they were a little worried about the fact that Anil Nanduru, the Senior VP recently netted about US$1.3m selling shares at an average price of US$44.85. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

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Genpact Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Nallicheri Tyagarajan, sold US$6.0m worth of shares at a price of US$54.87 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$45.10. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Genpact shares, than buying. 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!

View our latest analysis for Genpact

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Insider Ownership Of Genpact

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. Genpact insiders own about US$65m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Genpact Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. For example - Genpact has 1 warning sign we think you should be aware of.

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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.