Don't Ignore The Fact That This Insider Just Sold Some Shares In Alamo Group Inc. (NYSE:ALG)

Anyone interested in Alamo Group Inc. (NYSE:ALG) should probably be aware that the Executive VP, Dan Malone, recently divested US$445k worth of shares in the company, at an average price of US$106 each. The eyebrow raising move amounted to a reduction of 24% in their holding.

Check out our latest analysis for Alamo Group

The Last 12 Months Of Insider Transactions At Alamo Group

In fact, the recent sale by Dan Malone was the biggest sale of Alamo Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$107. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).

Insiders in Alamo Group didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) 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!

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Alamo Group insiders own about US$39m worth of shares. That equates to 3.1% of the company. 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 Alamo Group Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing 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. At Simply Wall St, we found 3 warning signs for Alamo Group that deserve your attention before buying any shares.

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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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