Some Frontier Group Holdings, Inc. (NASDAQ:ULCC) shareholders may be a little concerned to see that the Senior Vice President of Operations, Trevor Stedke, recently sold a substantial US$1.3m worth of stock at a price of US$8.03 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

The Last 12 Months Of Insider Transactions At Frontier Group Holdings

The insider, Barry Biffle, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$5.63 each. That means that an insider was selling shares at slightly below the current price (US$7.38). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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 44% of Barry Biffle's stake.

In the last year Frontier Group Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Frontier Group Holdings insiders own 34% of the company, currently worth about US$587m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Frontier Group Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Frontier Group Holdings.

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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.

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.