This Insider Has Just Sold Shares In Alkami Technology

Some Alkami Technology, Inc. (NASDAQ:ALKT) shareholders may be a little concerned to see that the Independent Chairman of the Board, Brian Smith, recently sold a substantial US$5.4m worth of stock at a price of US$37.50 per share. That sale reduced their total holding by 18% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Alkami Technology

Alkami Technology Insider Transactions Over The Last Year

The insider, George Kaiser, made the biggest insider sale in the last 12 months. That single transaction was for US$52m worth of shares at a price of US$31.17 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$36.90. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 17% of George Kaiser's holding.

Insiders in Alkami Technology didn't buy any shares in the last year. 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!

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Insider Ownership Of Alkami Technology

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Alkami Technology insiders own about US$424m worth of shares (which is 11% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Alkami Technology Tell Us?

Insiders sold Alkami Technology shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 - Alkami Technology has 2 warning signs we think you should be aware of.

But note: Alkami Technology 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.