Align Technology Inc. (NASDAQ: ALGN) shareholders (or potential shareholders) will be delighted to see President Joseph Hogan’s recent purchase of up to $2 million worth of stock for $189. While this only adds 6.0% to the size of the holding, it’s still quite a move by our standards.
Our analysis shows that ALGN may be underrated!
Align Technology Insider Trading in the Past 12 Months
Independent director Warren Thaler made the largest insider trading of the past 12 months. The single transaction is $3.5 million worth of stock at $703 per share. While an insider sale is negative for us, it’s even more negative if the stock sells at a lower price. The good news is that the big sale is well above the current price of $181. As such, it may not tell us what insiders think about the current share price. Warren Thaler is the only individual insider who has sold stock in the past 12 months.
Happily, we note that last year insiders bought 208,500 shares for $4.7 million. But they sold 500,000 shares for $3.5 million. Align Technology insiders have bought more than sold over the past 12 months. They pay about $228 on average. The deals show that insiders see current prices as attractive. You can see insider trading (corporate and individual) for the past year in the table below. By clicking on the chart below, you can see the precise details of each insider trade!
Align Technology isn’t the only stock insiders have bought.For those looking for win investment this free The list of growth companies with recent insider acquisitions may just be a ticket.
Does Align Technology have high insider ownership?
For common stockholders, it is worth checking how many shares are held by people inside the company. We generally expect to see a fairly high level of insider ownership. Align Technology insiders hold shares worth approximately $567 million (4.0% of the company). Most shareholders will be happy to see this kind of insider ownership, as it shows that management’s incentives are very aligned with other shareholders.
What might Align Technology’s insider trading tell us?
Great to see recent purchases. And long-term insider trading also gives us confidence. Combined with significant insider holdings, these factors suggest that Align Technology insiders are very consistent and likely believe the stock price is too low. It looks promising! So while it’s helpful to know how insiders behave when it comes to buying and selling, it’s also helpful to understand the risks a particular company faces.To help solve this problem, we found 1 warning sign You should take a closer look to understand Align Technology better.
If you want to check out another company – one that may be financially superior – then don’t miss this one free An interesting list of companies with high ROE and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulators. We currently consider open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based solely on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It does not constitute advice to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to bring you long-term focused analytics driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Wall Street has no positions in any of the stocks mentioned.