We wouldn't blame Allegiant Travel Company (NASDAQ:ALGT) shareholders if they were a little worried about the fact that Maurice Gallagher, the Executive Chairman recently netted about US$3.2m selling shares at an average price of US$83.57. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.6%.
Allegiant Travel Insider Transactions Over The Last Year
In fact, the recent sale by Maurice Gallagher was the biggest sale of Allegiant Travel shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$81.84. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year Allegiant Travel insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Allegiant Travel insiders own 17% of the company, worth about US$251m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Allegiant Travel Insider Transactions Indicate?
An insider sold Allegiant Travel shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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 Allegiant Travel is showing 2 warning signs in our investment analysis, and 1 of those is significant...
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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.
