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

Insiders were net sellers of Aristocrat Leisure Limited's (ASX:ALL ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Aristocrat Leisure

Aristocrat Leisure Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, MD & Director, Trevor Croker, sold AU$4.4m worth of shares at a price of AU$53.54 per share. That means that an insider was selling shares at slightly below the current price (AU$73.72). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of Trevor Croker's holding. The only individual insider seller over the last year was Trevor Croker.

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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aristocrat Leisure insiders own about AU$59m worth of shares. That equates to 0.1% of the company. 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?

The fact that there have been no Aristocrat Leisure insider transactions recently certainly doesn't bother us. Our analysis of Aristocrat Leisure insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Aristocrat Leisure, you should check out this free report on analyst forecasts for the company.

Of course Aristocrat Leisure 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 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.