Have L&T Technology Services Limited (NSE:LTTS) Insiders Been Selling Their Stock?

We note that the L&T Technology Services Limited (NSE:LTTS) CEO, MD & Whole Time Director, Amit Pal Chadha, recently sold ₹3.7m worth of stock for ₹3,717 per share. On the bright side, that’s just a small sale and only reduced their holding by 0.8%.

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L&T Technology Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Keshab Panda, for ₹35m worth of shares, at about ₹5,012 per share. While we don’t usually like to see insider selling, it’s more concerning if the sales take place at a lower price. It’s of some comfort that this sale was conducted at a price well above the current share price, which is ₹3,663. So it is hard to draw any strong conclusion from it.

In the last year L&T Technology Services insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NSEI:LTTS Insider Trading Volume March 12th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does L&T Technology Services Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. L&T Technology Services insiders own about ₹3.3b worth of shares. That equates to 0.8% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The L&T Technology Services Insider Transactions Indicate?

Insiders sold L&T Technology Services shares recently, but they didn’t buy any. And even if we look at the last year, we didn’t see any purchases. But it is good to see that L&T Technology Services is growing earnings. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing L&T Technology Services. In terms of investment risks, we’ve identified 2 warning signs with L&T Technology Services and understanding them should be part of your investment process.

But note: L&T Technology Services 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. 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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