It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in Allegiant Travel Company (NASDAQ:ALGT).
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, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Allegiant Travel Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President & Director Mark Kuehn bought US$1.4m worth of shares at a price of US$116 per share. That means that an insider was happy to buy shares at around the current price. Of course they may have changed their mind. But this suggests they are optimistic. Nonetheless, we consider it positive if insiders want to buy at around the current share price. The only individual insider to buy over the last year was Mark Kuehn.
You can see the insider transactions (by 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Allegiant Travel Have Sold Stock Recently
Over the last three months, we’ve seen significant insider selling at Allegiant Travel. In total, Executive VP & Chief Information Officer Robert Wilson dumped US$54k worth of shares in that time, and we didn’t record any purchases whatsoever. In light of this it’s hard to argue that all the directors think that the shares are a bargain.
Does Allegiant Travel 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. We usually like to see fairly high levels of insider ownership. Allegiant Travel insiders own 20% of the company, currently worth about US$405m 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 Do The Allegiant Travel Insider Transactions Indicate?
An insider sold Allegiant Travel shares recently, but they didn’t buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn’t worry us. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Allegiant Travel.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.