12%of this ALLETE, Inc. (NYSE:ALE) insider's holdings were sold in the last year

By
Simply Wall St
Published
November 21, 2021
NYSE:ALE
Source: Shutterstock

Looking at ALLETE, Inc.'s (NYSE:ALE ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for ALLETE

The Last 12 Months Of Insider Transactions At ALLETE

Over the last year, we can see that the biggest insider sale was by the Independent Lead Director, Heidi Jimmerson, for US$226k worth of shares, at about US$69.50 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$62.60. So it may not shed much light on insider confidence at current levels. Heidi Jimmerson was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:ALE Insider Trading Volume November 22nd 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. ALLETE insiders own about US$12m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At ALLETE Tell Us?

The fact that there have been no ALLETE insider transactions recently certainly doesn't bother us. Still, the insider transactions at ALLETE in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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. You'd be interested to know, that we found 1 warning sign for ALLETE and we suggest you have a look.

But note: ALLETE 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, but not derivative transactions.

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