NASDAQ:ACIW), you may well want to know whether insiders have been buying or selling.” data-reactid=”28″>We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell ACI Worldwide, Inc. (NASDAQ:ACIW), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″>Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
View our latest analysis for ACI Worldwide ” data-reactid=”36″> View our latest analysis for ACI Worldwide
ACI Worldwide Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President Odilon Almeida for US$748k worth of shares, at about US$24.59 per share. That implies that an insider found the current price of US$28.03 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for ACI Worldwide share holders is that an insider was buying at near the current price. Odilon Almeida was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
list of growing companies that insiders are buying.” data-reactid=”52″>There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does ACI Worldwide 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. ACI Worldwide insiders own about US$88m worth of shares. That equates to 2.7% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About ACI Worldwide Insiders?
1 warning sign for ACI Worldwide that deserve your attention before buying any shares.” data-reactid=”56″>There haven’t been any insider transactions in the last three months — that doesn’t mean much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in ACI Worldwide and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing ACI Worldwide. At Simply Wall St, we found 1 warning sign for ACI Worldwide that deserve your attention before buying any shares.
list of interesting companies, that have HIGH return on equity and low debt.” data-reactid=”57″>If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”63″>This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].
