We'd be surprised if Advantage Solutions Inc. (NASDAQ:ADV) shareholders haven't noticed that the Chief Operating Officer of Experiential Services, Andrea Young, recently sold US$227k worth of stock at US$3.43 per share. That sale was 18% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Advantage Solutions

In fact, the recent sale by Andrea Young was the biggest sale of Advantage Solutions shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.60. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 18% of Andrea Young's holding.

In the last twelve months insiders purchased 125.00k shares for US$406k. But insiders sold 66.00k shares worth US$227k. In total, Advantage Solutions insiders bought more than they sold over the last year. 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!

Advantage Solutions is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Advantage Solutions

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Advantage Solutions insiders own 2.1% of the company, worth about US$24m. 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 Does This Data Suggest About Advantage Solutions Insiders?

Unfortunately, there has been more insider selling of Advantage Solutions stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advantage Solutions. At Simply Wall St, we found 1 warning sign for Advantage Solutions that deserve your attention before buying any shares.

But note: Advantage Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.