While Allegiant travel company (NASDAQ:ALGT) Shareholders had a good week with shares up 11%, they need to remain vigilant. The fact that insiders decided to sell US$1.6m worth of shares in the last 12 months, even though prices were relatively low, could be an indication of expected weakness.

While we don’t think shareholders should simply track insider transactions, it makes sense that you should pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Allegiant Travel

Allegiant Travel insider transactions last year

The largest single sale by an insider in the last twelve months occurred when the insider, Scott DeAngelo, sold $1.1 million worth of shares at a price of $53.68 per share. So it’s clear that an insider wanted to take some money off the table, even below the current price of $81.02. Generally, we think it’s discouraging to see insiders selling below the current price, as it suggests they were happy with a lower valuation. While insider selling isn’t a positive sign, we can’t be sure if it means insiders believe the shares are fully valued, so it’s just a weak sign. It’s worth noting that this sale only included 23% of Scott DeAngelo’s stake.

Allegiant Travel insiders haven’t bought 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 how much and when, just click on the graphic below!

If you like buying stocks that insiders are buying rather than selling, then you might like this free List of companies. (Note: Most of them fly under the radar).

Does Allegiant Travel have high insider ownership?

I like to look at how many shares insiders own in a company to get an idea of ​​how aligned they are with insiders. We typically like to see relatively high levels of insider ownership. It’s great to see that Allegiant Travel insiders own 17% of the company, worth around US$248m. I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.

So what does this data say about Allegiant Travel Insider?

It doesn’t really mean much that no insiders traded in 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 get any confidence from Allegiant Travel’s insider selling. So while it’s helpful to know what insiders are doing when buying or selling, it’s also helpful to know the risks facing a particular company. You would be interested to know what we found 1 warning sign for Allegiant Travel and we recommend you take a look.

Naturally, You might find a fantastic investment if you look elsewhere. So take a look free List of interesting companies.

Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.