Don't Ignore The Fact That This Insider Just Sold Some Shares In Alliance Aviation Services Limited (ASX:AQZ)

Some Alliance Aviation Services Limited (ASX:AQZ) shareholders may be a little concerned to see that the MD & Executive Director, Scott McMillan, recently sold a substantial AU$2.2m worth of stock at a price of AU$4.17 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Alliance Aviation Services

The Last 12 Months Of Insider Transactions At Alliance Aviation Services

Notably, that recent sale by Scott McMillan is the biggest insider sale of Alliance Aviation Services shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$4.05. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

The chart below shows insider transactions (by companies and individuals) over the last year. 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: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.5% of Alliance Aviation Services shares, worth about AU$30m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Alliance Aviation Services Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Alliance Aviation Services is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alliance Aviation Services. Case in point: We've spotted 3 warning signs for Alliance Aviation Services you should be aware of, and 1 of them is a bit concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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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. 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.
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