This insider just sold shares of Allegiant Travel Company (NASDAQ:ALGT)


We would be surprised if Allegiant Travel Company (NASDAQ:ALGT) shareholders failed to notice that Executive Vice President and COO Scott Sheldon recently sold $105,000 worth of stock at $115 per share. On the bright side, this sale was only 2.3% of their stake, so we doubt it’s very significant on its own.

Allegiant Travel insider transactions over the past year

In fact, the recent sale by Executive Vice President and COO Scott Sheldon wasn’t their only sale of Allegiant Travel stock this year. Previously, they made an even bigger sale of shares worth -US$1.9 million at a price of US$173 per share. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. It is reassuring that this sale was made at a price well above the current share price of US$110. It is therefore difficult to draw a firm conclusion.

Last year, Allegiant Travel insiders did not buy any shares of the company. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

NasdaqGS: ALGT Insider Trading Volume August 7, 2022

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

Insider Ownership of Allegiant Travel

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Allegiant Travel insiders own 16% of the company, which is currently worth approximately US$310 million based on recent share price. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

So what do Allegiant Travel insider transactions indicate?

Insiders haven’t bought shares of Allegiant Travel in the past three months, but there have been some sales. And there have been no purchases to comfort us in the past year. The company enjoys strong insider ownership, but we are a little hesitant given the history of stock sales. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. When we did our research, we found 4 warning signs for Allegiant Travel (1 is a little worrying!) which we believe deserve your full attention.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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

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