This Insider Has Just Sold Shares In KPIT Technologies Limited (NSE:KPITTECH) – Simply Wall St
Stock Analysis
We note that a KPIT Technologies Limited (NSE:KPITTECH) insider, Suresh Umakanthaiah, recently sold ₹3.6m worth of stock for ₹719 per share. On the bright side, that's just a small sale and only reduced their holding by 7.6%.
Our analysis indicates that KPITTECH is potentially overvalued!
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Sachin Tikekar, sold ₹51m worth of shares at a price of ₹513 per share. That means that even when the share price was below the current price of ₹697, 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 12% of Sachin Tikekar's stake.
KPIT Technologies insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that KPIT Technologies insiders own 8.0% of the company, worth about ₹15b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that KPIT Technologies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing KPIT Technologies. You'd be interested to know, that we found 2 warning signs for KPIT Technologies and we suggest you have a look.
Of course KPIT Technologies 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.
Find out whether KPIT Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
KPIT Technologies Limited provides embedded software, artificial intelligence, and digital solutions for the automobile and mobility sector in the Americas, the United Kingdom, rest of Europe, and internationally.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Outstanding track record with high growth potential.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.