Whilst it may not be a huge deal, we thought it was good to see that the Alto Ingredients, Inc. (NASDAQ:ALTO) Independent Director, Gilbert Nathan, recently bought US$81k worth of stock, for US$4.04 per share. However, it only increased their shares held by 4.1%, and it wasn't a huge purchase by absolute value, either.
Alto Ingredients Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior Vice President, Christopher Wright, sold US$375k worth of shares at a price of US$5.73 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$4.63. So it may not shed much light on insider confidence at current levels. Christopher Wright was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 160.92k shares worth US$832k. But they sold 87.28k shares for US$527k. In the last twelve months there was more buying than selling by Alto Ingredients insiders. The average buy price was around US$5.17. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Alto Ingredients is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Alto Ingredients insiders own 4.5% of the company, worth about US$16m. 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 Alto Ingredients Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Alto Ingredients shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 3 warning signs for Alto Ingredients (of which 1 is concerning!) you should know about.
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. 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.