The fact that multiple Adtalem Global Education Inc. (NYSE:ATGE) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Adtalem Global Education
The Last 12 Months Of Insider Transactions At Adtalem Global Education
In the last twelve months, the biggest single sale by an insider was when the Director, Lisa Wardell, sold US$3.9m worth of shares at a price of US$41.14 per share. That means that an insider was selling shares at slightly below the current price (US$57.04). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 46% of Lisa Wardell's holding.
In the last year Adtalem Global Education insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insiders At Adtalem Global Education Have Sold Stock Recently
The last quarter saw substantial insider selling of Adtalem Global Education shares. In total, insiders sold US$1.7m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Adtalem Global Education insiders own about US$34m worth of shares. That equates to 1.5% of the company. 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 Adtalem Global Education Insider Transactions Indicate?
Insiders haven't bought Adtalem Global Education stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Adtalem Global Education is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 Adtalem Global Education has 1 warning sign and it would be unwise to ignore it.
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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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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.
