Insiders At Allison Transmission Holdings Sold US$6.6m In Stock, Alluding To Potential Weakness

Many Allison Transmission Holdings, Inc. (NYSE:ALSN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Allison Transmission Holdings

The Last 12 Months Of Insider Transactions At Allison Transmission Holdings

In the last twelve months, the biggest single sale by an insider was when the Chairman, David Graziosi, sold US$4.8m worth of shares at a price of US$71.53 per share. That means that an insider was selling shares at slightly below the current price (US$112). 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. It is worth noting that this sale was only 37% of David Graziosi's holding.

In the last year Allison Transmission Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Allison Transmission Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Allison Transmission Holdings Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Allison Transmission Holdings. In total, insiders sold US$538k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Allison Transmission Holdings

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Allison Transmission Holdings insiders own 0.6% of the company, worth about US$64m. 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 Allison Transmission Holdings Insiders?

Insiders sold Allison Transmission Holdings shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Allison Transmission Holdings makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 - Allison Transmission Holdings has 2 warning signs we think you should be aware of.

Of course Allison Transmission Holdings 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.