Some AAON, Inc. (NASDAQ:AAON) shareholders may be a little concerned to see that the Lead Independent Director, Jack Short, recently sold a whopping US$841k worth of stock at a price of US$56.07 per share. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we’ve seen.
AAON Insider Transactions Over The Last Year
Notably, that recent sale by Jack Short is the biggest insider sale of AAON shares that we’ve seen in the last year. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$58.61. 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. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 31% of Jack Short’s holding.
Insiders in AAON didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by 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: insiders have been buying them).
Does AAON 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. AAON insiders own about US$689m worth of shares (which is 22% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At AAON Tell Us?
Insiders haven’t bought AAON stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But since AAON is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AAON.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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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