This Insider Has Just Sold Shares In Alignment Healthcare

Some Alignment Healthcare, Inc. (NASDAQ:ALHC) shareholders may be a little concerned to see that the Founder, John Kao, recently sold a substantial US$11m worth of stock at a price of US$18.71 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

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Alignment Healthcare Insider Transactions Over The Last Year

Notably, that recent sale by John Kao is the biggest insider sale of Alignment Healthcare shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$19.75). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 16% of John Kao's holding.

In the last year Alignment Healthcare insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Alignment Healthcare

I will like Alignment Healthcare better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alignment Healthcare insiders own 4.5% of the company, currently worth about US$175m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Alignment Healthcare Insiders?

Insiders sold Alignment Healthcare shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Alignment Healthcare has 1 warning sign and it would be unwise to ignore this.

Of course Alignment Healthcare may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

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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.