Some Genpact Limited (NYSE:G) shareholders may be a little concerned to see that the Senior VP and Global Business Leader of Consumer, Anil Nanduru, recently sold a substantial US$988k worth of stock at a price of US$33.94 per share. That sale reduced their total holding by 28% which is hardly insignificant, but far from the worst we've seen.

Genpact Insider Transactions Over The Last Year

Notably, that recent sale by Senior VP and Global Business Leader of Consumer Anil Nanduru was not the only time they sold Genpact shares this year. Earlier in the year, they fetched US$45.50 per share in a -US$1.3m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$33.86). So it is hard to draw any strong conclusion from it.

Insiders in Genpact didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Genpact Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Genpact insiders own about US$55m worth of shares. That equates to 1.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Genpact Tell Us?

An insider sold Genpact shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Genpact makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Genpact has 1 warning sign and it would be unwise to ignore this.

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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 of direct interests only, but not derivative transactions or indirect interests.

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.