Adtalem Global Education Insiders Sell US$5.9m Of Stock, Possibly Signalling Caution

Simply Wall St · 05/13 10:09

Many Adtalem Global Education Inc. (NYSE:ATGE) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Adtalem Global Education

The Last 12 Months Of Insider Transactions At Adtalem Global Education

Over the last year, we can see that the biggest insider sale was by the Director, Lisa Wardell, for US$3.9m worth of shares, at about US$41.14 per share. That means that an insider was selling shares at slightly below the current price (US$64.80). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 46% of Lisa Wardell's stake.

Adtalem Global Education insiders didn't buy any shares over 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!

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NYSE:ATGE Insider Trading Volume May 13th 2024

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Insider Ownership Of Adtalem Global Education

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.6% of Adtalem Global Education shares, worth about US$39m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Adtalem Global Education Insiders?

It doesn't really mean much that no insider has traded Adtalem Global Education shares in the last quarter. Still, the insider transactions at Adtalem Global Education in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Adtalem Global Education that deserve your attention before buying any shares.

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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.