We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in CyberTech Systems and Software Limited (NSE:CYBERTECH).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.
View our latest analysis for CyberTech Systems and Software
CyberTech Systems and Software Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
Viswanath Tadimety bought 5754017 shares over the last 12 months at an average price of ₹0.20. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
CyberTech Systems and Software is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does CyberTech Systems and Software Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. CyberTech Systems and Software insiders own 51% of the company, currently worth about ₹632m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About CyberTech Systems and Software Insiders?
The fact that there have been no CyberTech Systems and Software insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like CyberTech Systems and Software insiders think the business has merit. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.