It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Air Lease Corporation (NYSE:AL).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Air Lease
Executive Vice President of Marketing & Commercial Affairs Grant Levy made the biggest insider sale in the last 12 months. That single transaction was for US$677k worth of shares at a price of US$45.13 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$33.28. So it is hard to draw any strong conclusion from it.
In total, Air Lease insiders sold more than they bought over the last year. They sold for an average price of about US$45.26. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$33.28. You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Air Lease Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Air Lease. Steven Udvar-Házy spent US$72k on stock, and there wasn’t any selling. This makes one think the business has some good points.
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. Air Lease insiders own about US$254m worth of shares (which is 6.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Air Lease Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The recent buying by an insider, along with high insider ownership, suggest that Air Lease insiders are fairly aligned, and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.