Some Algoma Steel Group Inc. (NASDAQ:ASTL) shareholders may be a little concerned to see that the Director, Michael McQuade, recently sold a substantial US$2.0m worth of stock at a price of US$10.16 per share. That diminished their holding by a very significant 67%, which arguably implies a strong desire to reallocate capital.
Check out our latest analysis for Algoma Steel Group
In fact, the recent sale by Michael McQuade was the biggest sale of Algoma Steel Group shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$9.76. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In total, Algoma Steel Group insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Many investors like to check how much of a company is owned by 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. Algoma Steel Group insiders own about US$27m worth of shares. That equates to 2.7% 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.
Insiders haven't bought Algoma Steel Group stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Algoma Steel Group. For instance, we've identified 2 warning signs for Algoma Steel Group (1 is potentially serious) you should be aware of.
Of course Algoma Steel Group 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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