This Insider Has Just Sold Shares In Alaska Air Group, Inc. (NYSE:ALK)

By
Simply Wall St
Published
November 06, 2020
NYSE:ALK

Investors may wish to note that the CFO & EVP of finance of Alaska Air Group, Inc., Shane Tackett, recently netted US$96k from selling stock, receiving an average price of US$38.22. It wasn't a huge sale, but it did reduce their holding by 18%. This does not instill confidence.

See our latest analysis for Alaska Air Group

The Last 12 Months Of Insider Transactions At Alaska Air Group

The insider, Andrew Harrison, made the biggest insider sale in the last 12 months. That single transaction was for US$98k worth of shares at a price of US$39.02 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$39.18. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 11% of Andrew Harrison's holding.

Happily, we note that in the last year insiders paid US$30k for 991.28 shares. But they sold 7.21k shares for US$258k. Over the last year we saw more insider selling of Alaska Air Group shares, than buying. The sellers received a price of around US$35.82, on average. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. 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!

insider-trading-volume
NYSE:ALK Insider Trading Volume November 6th 2020

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Alaska Air Group insiders own 0.4% of the company, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Alaska Air Group Tell Us?

Insiders sold Alaska Air Group shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While we like knowing 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. In terms of investment risks, we've identified 2 warning signs with Alaska Air Group and understanding them should be part of your investment process.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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