Have Insiders Sold Aristocrat Leisure Shares Recently?

We wouldn't blame Aristocrat Leisure Limited (ASX:ALL) shareholders if they were a little worried about the fact that Trevor Croker, the CEO, MD & Director recently netted about AU$4.4m selling shares at an average price of AU$52.97. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Aristocrat Leisure

The Last 12 Months Of Insider Transactions At Aristocrat Leisure

In fact, the recent sale by Trevor Croker was the biggest sale of Aristocrat Leisure shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (AU$54.22). 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. It is worth noting that this sale was only 12% of Trevor Croker's holding.

Happily, we note that in the last year insiders paid AU$212k for 5.15k shares. But insiders sold 82.37k shares worth AU$4.4m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Aristocrat Leisure Boast High 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. Insiders own 0.2% of Aristocrat Leisure shares, worth about AU$53m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Aristocrat Leisure Tell Us?

An insider hasn't bought Aristocrat Leisure stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Aristocrat Leisure is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com