Stock Analysis

This Insider Has Just Sold Shares In Natural Alternatives International, Inc. (NASDAQ:NAII)

  •  Updated
NasdaqGM:NAII
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Anyone interested in Natural Alternatives International, Inc. (NASDAQ:NAII) should probably be aware that the Chairman & CEO, Mark LeDoux, recently divested US$114k worth of shares in the company, at an average price of US$10.35 each. On the bright side, that sale was only 1.3% of their holding, so we doubt it's very meaningful, on its own.

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Natural Alternatives International Insider Transactions Over The Last Year

In fact, the recent sale by Mark LeDoux was the biggest sale of Natural Alternatives International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$10.21. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Insiders in Natural Alternatives International didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:NAII Insider Trading Volume November 23rd 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Natural Alternatives International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Natural Alternatives International insiders own about US$14m worth of shares. That equates to 22% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Natural Alternatives International Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 6 warning signs for Natural Alternatives International (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

But note: Natural Alternatives International 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, but not derivative transactions.

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