Anyone interested in Frontier Group Holdings, Inc. (NASDAQ:ULCC) should probably be aware that the Senior Vice President of Operations, Trevor Stedke, recently divested US$450k worth of shares in the company, at an average price of US$5.41 each. That sale was 33% of their holding, so it does make us raise an eyebrow.

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. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$5.03. So it may not shed much light on insider confidence at current levels.

Frontier Group Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Frontier Group Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Frontier Group Holdings insiders own about US$409m worth of shares (which is 34% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Frontier Group Holdings Insider Transactions Indicate?

An insider hasn't bought Frontier Group Holdings stock in the last three months, but there was some selling. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision.

But note: Frontier Group Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.