Have AAON Insiders Been Selling Stock?

We wouldn't blame AAON, Inc. (NASDAQ:AAON) shareholders if they were a little worried about the fact that Norman Asbjornson, the Founder recently netted about US$963k selling shares at an average price of US$87.41. However, that sale only accounted for 0.08% of their holding, so arguably it doesn't say much about their conviction.

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AAON Insider Transactions Over The Last Year

In fact, the recent sale by Founder Norman Asbjornson was not their only sale of AAON shares this year. Earlier in the year, they fetched US$63.48 per share in a -US$6.3m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$86.67. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 0.7% of Norman Asbjornson's stake.

Norman Asbjornson divested 211.62k shares over the last 12 months at an average price of US$72.94. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does AAON Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that AAON insiders own 18% of the company, worth about US$1.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About AAON Insiders?

An insider sold AAON shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that AAON is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - AAON has 1 warning sign we think you should be aware of.

Of course AAON 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.