12% Of This Aristocrat Leisure Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Aristocrat Leisure Limited's (ASX:ALL ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Aristocrat Leisure

Aristocrat Leisure Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO, MD & Director, Trevor Croker, for AU$4.4m worth of shares, at about AU$53.54 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$61.09. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 12% of Trevor Croker's holding. Trevor Croker was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 5.15k shares worth AU$212k. On the other hand they divested 82.37k shares, for AU$4.4m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Aristocrat Leisure insiders own 0.1% of the company, worth about AU$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Aristocrat Leisure Insiders?

It doesn't really mean much that no insider has traded Aristocrat Leisure shares in the last quarter. We don't take much encouragement from the transactions by Aristocrat Leisure insiders. But we do like the fact that insiders own a fair chunk of the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Aristocrat Leisure.

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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.