EPAM Systems President of Global Business & Chief Revenue Officer Balazs Fejes Sells 98% Of Holding

We wouldn't blame EPAM Systems, Inc. (NYSE:EPAM) shareholders if they were a little worried about the fact that Balazs Fejes, the President of Global Business & Chief Revenue Officer recently netted about US$1.1m selling shares at an average price of US$200. That diminished their holding by a very significant 98%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for EPAM Systems

The Last 12 Months Of Insider Transactions At EPAM Systems

The Co-Founder, Arkadiy Dobkin, made the biggest insider sale in the last 12 months. That single transaction was for US$9.1m worth of shares at a price of US$307 each. While insider selling is a negative, to us, it is more negative if the shares are sold 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 US$191. So it is hard to draw any strong conclusion from it.

EPAM Systems insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that EPAM Systems insiders own 3.2% of the company, worth about US$349m. 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 Do The EPAM Systems Insider Transactions Indicate?

An insider sold EPAM Systems shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, EPAM Systems 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 1 warning sign with EPAM Systems and understanding it should be part of your investment process.

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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.

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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.