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Zachary Savas Is The Independent Director of Alta Equipment Group Inc. (NYSE:ALTG) And They Just Picked Up 17% More Shares

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Even if it's not a huge purchase, we think it was good to see that Zachary Savas, the Independent Director of Alta Equipment Group Inc. (NYSE:ALTG) recently shelled out US$64k to buy stock, at US$12.86 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.

See our latest analysis for Alta Equipment Group

Alta Equipment Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Independent Director Daniel Shribman for US$105k worth of shares, at about US$8.75 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.10), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Alta Equipment Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$9.65. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and 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!

insider-trading-volume
insider-trading-volume

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).

Does Alta Equipment Group 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. It appears that Alta Equipment Group insiders own 21% of the company, worth about US$87m. 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 Alta Equipment Group Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Alta Equipment Group insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Alta Equipment Group you should know about.

Of course Alta Equipment Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.