We wouldn’t blame Campus Activewear Limited (NSE:CAMPUS) shareholders if they were a little worried about the fact that Piyush Singh, the Chief Strategy Officer recently netted about ₹134m selling shares at an average price of ₹419. Probably the most concerning element of the whole transaction is that the disposal amounted to 68% of their entire holding.
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The Last 12 Months Of Insider Transactions At Campus Activewear
Notably, that recent sale by Piyush Singh is the biggest insider sale of Campus Activewear shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (₹432). 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was 68% of Piyush Singh’s holding.
Happily, we note that in the last year insiders paid ₹326k for 700.00 shares. On the other hand they divested 546.85k shares, for ₹240m. Over the last year we saw more insider selling of Campus Activewear shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Campus Activewear better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Campus Activewear insiders own 70% of the company, currently worth about ₹93b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Campus Activewear Insiders?
Insiders sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. On the plus side, Campus Activewear makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. In terms of investment risks, we’ve identified 2 warning signs with Campus Activewear and understanding them should be part of your investment process.
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.