Alignment Healthcare Chief Legal & Administrative Officer Christopher Joyce Sells 32% Of Holding

We'd be surprised if Alignment Healthcare, Inc. (NASDAQ:ALHC) shareholders haven't noticed that the Chief Legal & Administrative Officer, Christopher Joyce, recently sold US$231k worth of stock at US$9.45 per share. The eyebrow raising move amounted to a reduction of 32% in their holding.

View our latest analysis for Alignment Healthcare

Alignment Healthcare Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Robert Freeman, sold US$1.1m worth of shares at a price of US$10.01 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.68. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of Robert Freeman's holding.

All up, insiders sold more shares in Alignment Healthcare than they bought, over the last year. 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 Alignment Healthcare 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.

Does Alignment Healthcare Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Alignment Healthcare insiders own 5.2% of the company, currently worth about US$114m based on the recent share price. 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 Alignment Healthcare Tell Us?

Insiders haven't bought Alignment Healthcare stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Alignment Healthcare you should know about.

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.

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