Have Insiders Sold American Superconductor Shares Recently?

Some American Superconductor Corporation (NASDAQ:AMSC) shareholders may be a little concerned to see that the CFO, Senior VP & Treasurer, John Kosiba, recently sold a substantial US$1.4m worth of stock at a price of US$28.28 per share. That's a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.

See our latest analysis for American Superconductor

American Superconductor Insider Transactions Over The Last Year

Notably, that recent sale by John Kosiba is the biggest insider sale of American Superconductor shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$28.31). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 12% of John Kosiba's holding.

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 American Superconductor Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that American Superconductor insiders own 4.5% of the company, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About American Superconductor Insiders?

An insider hasn't bought American Superconductor stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Superconductor. Every company has risks, and we've spotted 3 warning signs for American Superconductor you should know about.

Of course American Superconductor 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.