Should You Be Worried About Insider Transactions At Aircastle Limited (NYSE:AYR)?

We often see insiders buying up shares in companies that perform well over the long term. 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 Aircastle Limited (NYSE:AYR).

Do Insider Transactions Matter?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’

See our latest analysis for Aircastle

The Last 12 Months Of Insider Transactions At Aircastle

The Chief Commercial Officer, Michael Kriedberg, made the biggest insider sale in the last 12 months. That single transaction was for US$716k worth of shares at a price of US$20.45 each. So we know that an insider sold shares at around the present share price of US$20.35. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. 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).

We note that in the last year insiders divested 57500 shares for a total of US$1.2m. In the last year Aircastle insiders didn’t buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:AYR Recent Insider Trading, April 14th 2019
NYSE:AYR Recent Insider Trading, April 14th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at Aircastle Have Sold Stock Recently

The last quarter saw substantial insider selling of Aircastle shares. In total, insiders sold US$1.0m 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 Aircastle

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.1% of Aircastle shares, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The Aircastle Insider Transactions Indicate?

Insiders haven’t bought Aircastle stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Aircastle is growing earnings. While insiders do own shares, they don’t own a heap, and they have been selling. So we’d only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Aircastle.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.