Insider Buying: Chakkilam Rajeswari Just Spent ₹256m On Cigniti Technologies Limited (NSE:CIGNITITEC) Shares – Simply Wall St
Those following along with Cigniti Technologies Limited (NSE:CIGNITITEC) will no doubt be intrigued by the recent purchase of shares by insider Chakkilam Rajeswari, who spent a stonking ₹256m on stock at an average price of ₹602. That increased their holding by a full 135%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
However if you'd rather see where the opportunities and risks are within CIGNITITEC's industry, you can check out our analysis on the IN IT industry.
Notably, that recent purchase by Chakkilam Rajeswari is the biggest insider purchase of Cigniti Technologies shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being ₹580). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 503.80k shares worth ₹303m. On the other hand they divested 22.61k shares, for ₹14m. In the last twelve months there was more buying than selling by Cigniti Technologies insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Cigniti Technologies insiders own 64% of the company, worth about ₹10b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cigniti Technologies. Looks promising! 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 – Cigniti Technologies has 1 warning sign we think you should be aware of.
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.
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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.
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Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
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Cigniti Technologies Limited provides software testing services worldwide.
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.
Flawless balance sheet with acceptable track record.
Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.
Cigniti Technologies Limited provides software testing services worldwide.
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.
Flawless balance sheet with acceptable track record.
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