Anyone interested in ACI Worldwide, Inc. (NASDAQ:ACIW) should probably be aware that the Executive VP & Chief Revenue Officer, Alessandro da Silva, recently divested US$494k worth of shares in the company, at an average price of US$27.72 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.
Check out our latest analysis for ACI Worldwide
The Last 12 Months Of Insider Transactions At ACI Worldwide
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Thomas Warsop bought US$1.0m worth of shares at a price of US$24.16 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$27.83. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In total, ACI Worldwide 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does ACI Worldwide Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that ACI Worldwide insiders own 1.0% of the company, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ACI Worldwide Insiders?
An insider hasn't bought ACI Worldwide stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, ACI Worldwide has 3 warning signs (and 1 which is a bit concerning) we think you should know about.
But note: ACI Worldwide 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.