Have Insiders Sold L&T Technology Services Limited (NSE:LTTS) Shares Recently?
Some L&T Technology Services Limited (NSE:LTTS) shareholders may be a little concerned to see that the CEO, MD & Whole Time Director, Keshab Panda, recently sold a substantial ₹52m worth of stock at a price of ₹2,639 per share. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.
View our latest analysis for L&T Technology Services
L&T Technology Services Insider Transactions Over The Last Year
In fact, the recent sale by Keshab Panda was the biggest sale of L&T Technology Services shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of ₹2,643, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 17% of Keshab Panda's stake.
Over the last year, we can see that insiders have bought 2.00k shares worth ₹3.5m. But they sold 230.01k shares for ₹457m. All up, insiders sold more shares in L&T Technology Services 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).
Insider Ownership of L&T Technology Services
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that L&T Technology Services insiders own 1.1% of the company, worth about ₹3.0b. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At L&T Technology Services Tell Us?
Unfortunately, there has been more insider selling of L&T Technology Services stock, than buying, in the last three months. 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. 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. Case in point: We've spotted 3 warning signs for L&T Technology Services you should be aware of.
Of course L&T Technology Services may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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