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Insiders who bought US$6.45m worth of Alto Ingredients, Inc. (NASDAQ:ALTO) stock in the last year have seen some of their losses recouped as the stock gained 13% last week. However, total losses seen by insiders are still US$3.0m since the time of purchase.
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.
Our free stock report includes 1 warning sign investors should be aware of before investing in Alto Ingredients. Read for free now.
The Last 12 Months Of Insider Transactions At Alto Ingredients
Over the last year, we can see that the biggest insider purchase was by insider Bradley Radoff for US$5.5m worth of shares, at about US$1.86 per share. That means that even when the share price was higher than US$0.90 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Alto Ingredients insiders may have bought shares in the last year, but they didn't sell any. They paid about US$1.66 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Alto Ingredients
Alto Ingredients is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Alto Ingredients Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Alto Ingredients. Not only was there no selling that we can see, but they collectively bought US$6.3m worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Alto Ingredients
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 10% of Alto Ingredients shares, worth about US$7.0m, according to our data. We do generally prefer see higher levels of insider ownership.