In the last year, many Adtalem Global Education Inc. (NYSE:ATGE) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Adtalem Global Education Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Director, Lisa Wardell, sold US$3.4m worth of shares at a price of US$132 per share. So what is clear is that an insider saw fit to sell at around the current price of US$122. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 2.51k shares for US$229k. But they sold 74.88k shares for US$9.6m. In total, Adtalem Global Education insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Adtalem Global Education Have Bought Stock Recently

It's good to see that Adtalem Global Education insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$142k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

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. Adtalem Global Education insiders own about US$100m worth of shares (which is 2.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Adtalem Global Education Tell Us?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The recent buying by some insiders , along with high insider ownership, suggest that Adtalem Global Education insiders are fairly aligned, and optimistic. Of course, the future is what matters most.

Of course Adtalem Global Education may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.