Those following along with Align Technology, Inc. (NASDAQ:ALGN) will no doubt be intrigued by the recent purchase of shares by Charles Larkin, Independent Chairman of the company, who spent a stonking US$1.5m on stock at an average price of US$235. Not only is that a big swing, but it increased their holding size by 38%, which is definitely great to see.
Align Technology Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Joseph Lacob, sold US$7.7m worth of shares at a price of US$313 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$233. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 17.01k shares worth US$3.5m. But they sold 27.52k shares for US$8.4m. In total, Align Technology insiders sold more than they bought over the last year. They sold for an average price of about US$305. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$233. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Align Technology insiders own 4.1% of the company, worth about US$732m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Align Technology Insider Transactions Indicate?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Align Technology insiders are reasonably well aligned, and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Align Technology.
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 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.