Shareholders Can't Ignore CA$2.7m Of Sales By Algoma Steel Group Insiders

Even though Algoma Steel Group Inc. (NASDAQ:ASTL) stock gained 12% last week, insiders who sold CA$2.7m worth of stock over the past year are probably better off. Selling at an average price of CA$9.32, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Algoma Steel Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Michael McQuade, sold US$2.0m worth of shares at a price of US$10.25 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$6.55. So it is hard to draw any strong conclusion from it.

In total, Algoma Steel Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Algoma Steel Group

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Insiders At Algoma Steel Group Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Algoma Steel Group. Vice President of Corporate Development & Treasurer Michael Moraca purchased US$22k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Algoma Steel Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.7% of Algoma Steel Group shares, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Algoma Steel Group Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. Still, the insider transactions at Algoma Steel Group in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of 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. For example - Algoma Steel Group has 1 warning sign we think you should be aware of.

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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.