Insiders At Algoma Steel Group Sold CA$1.7m In Stock, Alluding To Potential Weakness

Many Algoma Steel Group Inc. (NASDAQ:ASTL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Algoma Steel Group

Algoma Steel Group Insider Transactions Over The Last Year

The Independent Director, David Sgro, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$7.81 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$8.22. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 19% of David Sgro's holding.

All up, insiders sold more shares in Algoma Steel Group than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Are Algoma Steel Group Insiders Buying Or Selling?

In the last three months, Independent Director Eric Rosenfeld bought US$218k. But that was only a smidgen more than the US$216k worth of sales. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

Does Algoma Steel Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Algoma Steel Group insiders own about US$23m worth of shares. That equates to 2.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Algoma Steel Group Insiders?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. We're a little cautious about the insider selling at Algoma Steel Group. But it's good to see that insiders own shares in the company. 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. For example - Algoma Steel Group has 3 warning signs we think you should be aware of.

But note: Algoma Steel Group 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.