Independent Chairman of Align Technology Picks Up 38% More Stock

Those following along with Align Technology, Inc. (NASDAQ:ALGN) will no doubt be intrigued by the recent purchase of shares by Charles Larkin, Independent Chairman of the company, who spent a stonking US$1.5m on stock at an average price of US$235. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 38%.

See our latest analysis for Align Technology

Align Technology Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Joseph Lacob, for US$7.7m worth of shares, at about US$313 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$233. So it may not shed much light on insider confidence at current levels.

Over the last year, we can see that insiders have bought 17.01k shares worth US$3.5m. But insiders sold 27.52k shares worth US$8.4m. In total, Align Technology insiders sold more than they bought over the last year. The sellers received a price of around US$305, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$233). 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!

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Insider Ownership Of Align Technology

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Align Technology insiders own 4.1% of the company, worth about US$732m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Align Technology Tell Us?

It's certainly positive to see the recent insider purchase. 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 an insider suggests they are well aligned and optimistic. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Align Technology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.