Independent Chairman of the Board William Foley Sold A Bunch Of Shares In Alight

We wouldn't blame Alight, Inc. (NYSE:ALIT) shareholders if they were a little worried about the fact that William Foley, the Independent Chairman of the Board recently netted about US$41m selling shares at an average price of US$8.25. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Alight

Alight Insider Transactions Over The Last Year

Notably, that recent sale by William Foley is the biggest insider sale of Alight shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$7.73. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 7.37k shares for US$68k. On the other hand they divested 5.00m shares, for US$41m. You can see the insider transactions (by companies and 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!

I will like Alight 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alight insiders own about US$226m worth of shares (which is 5.4% 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.

What Might The Insider Transactions At Alight Tell Us?

An insider sold Alight shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alight. In terms of investment risks, we've identified 1 warning sign with Alight and understanding this should be part of your investment process.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.