VP, General Counsel & Secretary Eric Scroggins Sold A Bunch Of Shares In Allison Transmission Holdings

We wouldn't blame Allison Transmission Holdings, Inc. (NYSE:ALSN) shareholders if they were a little worried about the fact that Eric Scroggins, the VP, General Counsel & Secretary recently netted about US$525k selling shares at an average price of US$98.05. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Allison Transmission Holdings

Notably, that recent sale by Eric Scroggins is the biggest insider sale of Allison Transmission Holdings shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$98.71, an insider wanted to cash in some shares. 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 28% of Eric Scroggins's holding.

Allison Transmission Holdings insiders didn't buy any shares over 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!

See our latest analysis for Allison Transmission Holdings

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Insider Ownership Of Allison Transmission Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Allison Transmission Holdings insiders own about US$50m worth of shares. That equates to 0.6% of the company. 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. 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 Allison Transmission Holdings. In terms of investment risks, we've identified 2 warning signs with Allison Transmission Holdings and understanding these should be part of your investment process.

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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 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.