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Potential Adtalem Global Education Inc. (NYSE:ATGE) shareholders may wish to note that the Independent Director, Michael Malafronte, recently bought US$245k worth of stock, paying US$34.04 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 120%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Adtalem Global Education
Notably, that recent purchase by Michael Malafronte is the biggest insider purchase of Adtalem Global Education shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$36.89. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Adtalem Global Education insiders decided to buy shares at close to current prices.
While Adtalem Global Education insiders bought shares during the last year, they didn't sell. The average buy price was around US$37.67. This is nice to see since it implies that insiders might see value around current prices. 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!
Adtalem Global Education is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Adtalem Global Education
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. Adtalem Global Education insiders own about US$18m worth of shares. That equates to 1.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Adtalem Global Education Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Adtalem Global Education insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Adtalem Global Education is showing 3 warning signs in our investment analysis, and 2 of those are potentially serious...
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.
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.
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. 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.
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