Those following along with Alaska Communications Systems Group, Inc. (NASDAQ:ALSK) will no doubt be intrigued by the recent purchase of shares by insider Karen Singer, who spent a stonking US$1.0m on stock at an average price of US$1.80. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Alaska Communications Systems Group
Notably, that recent purchase by Karen Singer is the biggest insider purchase of Alaska Communications Systems Group shares that we've seen in the last year. That means that even when the share price was higher than US$1.78 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Alaska Communications Systems Group insiders were buying shares, but not selling. The average buy price was around US$1.73. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Alaska Communications Systems Group insiders own about US$14m worth of shares. That equates to 14% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Alaska Communications Systems Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Alaska Communications Systems Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alaska Communications Systems Group. For instance, we've identified 5 warning signs for Alaska Communications Systems Group (1 is a bit concerning) you should be aware of.
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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