From what we can see, insiders were net sellers in APi Group Corporation's (NYSE:APG ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.    

Although we don't think shareholders should simply follow insider transactions,  logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At APi Group

The Independent Co-Chairman, James Lillie, made the biggest insider sale in the last 12 months. That single transaction was for US$3.8m worth of shares at a price of US$23.42 each.    So it's clear an insider wanted to take some cash off the table, even below the current price of US$39.28.  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.   This single sale was just 2.9% of James Lillie's stake.      James Lillie was the only individual insider to sell shares in the last twelve months.  

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!

NYSE:APG Insider Trading Volume April 16th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does APi Group Boast High Insider Ownership?

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's great to see that APi Group insiders own 14% of the company, worth about US$1.4b.  I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.  

What Might The Insider Transactions At APi Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much.      While we feel good about high insider ownership of APi Group, we can't say the same about the selling of shares.       So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.    To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of APi Group.  

But note: APi Group 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.