Insiders See US$1.94m Investment In AlTi Global Jump Last Week

Insiders who bought AlTi Global, Inc. (NASDAQ:ALTI) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$43m as a result of the stock's 13% gain over the same period. As a result, the stock they originally bought for US$1.94m is now worth US$2.18m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for AlTi Global

AlTi Global Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Michael Tiedemann bought US$461k worth of shares at a price of US$4.66 per share. Even though the purchase was made at a significantly lower price than the recent price (US$5.30), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$1.9m for 411.27k shares. But insiders sold 38.38k shares worth US$184k. In the last twelve months there was more buying than selling by AlTi Global insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

AlTi Global is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At AlTi Global Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at AlTi Global. Insiders spent US$1.9m on shares. But we did see insider selling worth US$184k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of AlTi Global

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. AlTi Global insiders own 30% of the company, currently worth about US$178m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The AlTi Global Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest AlTi Global insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AlTi Global. While conducting our analysis, we found that AlTi Global has 1 warning sign and it would be unwise to ignore this.

But note: AlTi Global 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.

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