ACI Worldwide Insider Ups Holding By 58% During Year
Simply Wall St · 09/15 11:55

Viewing insider transactions for ACI Worldwide, Inc.'s (NASDAQ:ACIW ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

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 ACI Worldwide

The Last 12 Months Of Insider Transactions At ACI Worldwide

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Thomas Warsop for US$1.0m worth of shares, at about US$24.16 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.91). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Thomas Warsop 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:ACIW Insider Trading Volume September 15th 2023

ACI Worldwide is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At ACI Worldwide Have Sold Stock Recently

The last three months saw significant insider selling at ACI Worldwide. In total, Executive VP of Demand Merchant Solutions & Chief Product Officer Debbie Guerra sold US$80k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of ACI Worldwide

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ACI Worldwide insiders own about US$26m worth of shares. That equates to 1.0% 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?

An insider sold stock recently, but they haven't been buying. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for ACI Worldwide you should be aware of, and 1 of these is concerning.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.