Independent Director of Alight Richard Massey Buys 6.9% More Shares

Those following along with Alight, Inc. (NYSE:ALIT) will no doubt be intrigued by the recent purchase of shares by Richard Massey, Independent Director of the company, who spent a stonking US$639k on stock at an average price of US$6.39. While that only increased their holding size by 6.9%, it is still a big swing by our standards.

Check out our latest analysis for Alight

The Last 12 Months Of Insider Transactions At Alight

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Foley, for US$41m worth of shares, at about US$8.45 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.11. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 125.09k shares for US$808k. On the other hand they divested 5.33m shares, for US$44m. Over the last year we saw more insider selling of Alight shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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

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. Alight insiders own about US$153m worth of shares (which is 4.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Alight Insiders?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Alight.

But note: Alight may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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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.