Don't Ignore The Insider Selling In ACI Worldwide

We wouldn't blame ACI Worldwide, Inc. (NASDAQ:ACIW) shareholders if they were a little worried about the fact that Charles Peters, the Independent Director recently netted about US$745k selling shares at an average price of US$57.57. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for ACI Worldwide

The Last 12 Months Of Insider Transactions At ACI Worldwide

Notably, that recent sale by Charles Peters is the biggest insider sale of ACI Worldwide shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$53.21. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year ACI Worldwide insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of ACI Worldwide

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that ACI Worldwide insiders own 1.0% of the company, worth about US$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At ACI Worldwide Tell Us?

An insider hasn't bought ACI Worldwide stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, ACI Worldwide makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. Case in point: We've spotted 2 warning signs for ACI Worldwide you should be aware of.

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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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.