Insider Sellers Might Regret Selling Alkami Technology Shares at a Lower Price Than Current Market Value

Alkami Technology, Inc.'s (NASDAQ:ALKT) value has fallen 11% in the last week, but insiders who sold US$170m worth of stock over the last year have had less success. Given that the average selling price of US$35.01 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Alkami Technology

Alkami Technology Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, George Kaiser, for US$94m worth of shares, at about US$37.50 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$29.80. So it may not shed much light on insider confidence at current levels.

In the last year Alkami Technology insiders didn't buy any company stock. 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 Alkami Technology 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.

Insiders At Alkami Technology Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Alkami Technology. In total, insiders dumped US$5.1m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. We usually like to see fairly high levels of insider ownership. It's great to see that Alkami Technology insiders own 6.4% of the company, worth about US$195m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Alkami Technology Insider Transactions Indicate?

Insiders haven't bought Alkami Technology stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 1 warning sign for Alkami Technology you should be aware of.

Of course Alkami Technology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.