Selling US$1.6m Of Allegiant Travel Stock Rewarded Insiders

While Allegiant Travel Company (NASDAQ:ALGT) shareholders have enjoyed a good week with stock up 11%, they need remain vigilant. The fact that insiders chose to dispose of US$1.6m worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Allegiant Travel

Allegiant Travel Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Scott DeAngelo, sold US$1.1m worth of shares at a price of US$53.68 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$81.02. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was only 23% of Scott DeAngelo's holding.

Insiders in Allegiant Travel didn't buy any shares in 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!

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).

Does Allegiant Travel Boast High Insider Ownership?

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's great to see that Allegiant Travel insiders own 17% of the company, worth about US$248m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Allegiant Travel Insiders?

It doesn't really mean much that no insider has traded Allegiant Travel shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Allegiant Travel insiders selling. 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. You'd be interested to know, that we found 1 warning sign for Allegiant Travel and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.