Some Alignment Healthcare, Inc. (NASDAQ:ALHC) shareholders may be a little concerned to see that the President, John Kao, recently sold a substantial US$8.0m worth of stock at a price of US$15.95 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Alignment Healthcare

Alignment Healthcare Insider Transactions Over The Last Year

In fact, the recent sale by President John Kao was not their only sale of Alignment Healthcare shares this year. They previously made an even bigger sale of -US$8.4m worth of shares at a price of US$20.11 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$16.48. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Alignment Healthcare didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Alignment Healthcare

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alignment Healthcare insiders own about US$189m worth of shares (which is 6.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Alignment Healthcare Tell Us?

Insiders sold Alignment Healthcare shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Alignment Healthcare and understanding these should be part of your investment process.

Of course Alignment Healthcare 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, but not derivative transactions.

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