Don’t Ignore The Fact That This Insider Just Sold Some Shares In Allegiant Travel Company (NASDAQ:ALGT)

Anyone interested in Allegiant Travel Company (NASDAQ:ALGT) should probably be aware that the Executive VP & Chief Information Officer, Robert Wilson, recently divested US$145k worth of shares in the company, at an average price of US$145 each. On the bright side, that sale was only-5.7% of their holding, so we doubt it’s very meaningful, on its own.

View our latest analysis for Allegiant Travel

Allegiant Travel Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board & CEO, Maurice Gallagher, sold US$7.6m worth of shares at a price of US$149 per share. So what is clear is that an insider saw fit to sell at around the current price of US$144. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

All up, insiders sold more shares in Allegiant Travel than they bought, over the last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:ALGT Recent Insider Trading, August 13th 2019
NasdaqGS:ALGT Recent Insider Trading, August 13th 2019

Insider Ownership of Allegiant Travel

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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’s great to see that Allegiant Travel insiders own 19% of the company, worth about US$440m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Allegiant Travel Tell Us?

Insiders haven’t bought Allegiant Travel stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in Allegiant Travel, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.