AAR Independent Director Ellen Lord Sells 29% Of Holding

Anyone interested in AAR Corp. (NYSE:AIR) should probably be aware that the Independent Director, Ellen Lord, recently divested US$425k worth of shares in the company, at an average price of US$100 each. That sale was 29% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At AAR

In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Commercial Officer, Christopher Jessup, sold US$871k worth of shares at a price of US$97.13 per share. That means that an insider was selling shares at around the current price of US$95.25. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in AAR didn't buy 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, for how much, and when, simply click on the graph below!

View our latest analysis for AAR

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Insider Ownership Of AAR

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 2.4% of AAR shares, worth about US$94m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The AAR Insider Transactions Indicate?

An insider sold AAR shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since AAR is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for AAR that deserve your attention before buying any shares.

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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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