Some Allison Transmission Holdings, Inc. (NYSE:ALSN) shareholders may be a little concerned to see that the VP & Chief Procurement Officer, Teresa Van Niekerk, recently sold a substantial US$583k worth of stock at a price of US$75.70 per share. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.

Check out our latest analysis for Allison Transmission Holdings

The Last 12 Months Of Insider Transactions At Allison Transmission Holdings

In the last twelve months, the biggest single sale by an insider was when the Chairman, David Graziosi, sold US$4.8m worth of shares at a price of US$71.53 per share. That means that even when the share price was below the current price of US$76.81, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 37% of David Graziosi's holding.

In the last year Allison Transmission 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.6% of Allison Transmission Holdings shares, worth about US$42m. 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 Do The Allison Transmission Holdings Insider Transactions Indicate?

Insiders sold Allison Transmission Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Allison Transmission Holdings is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Allison Transmission Holdings. In terms of investment risks, we've identified 2 warning signs with Allison Transmission Holdings and understanding these should be part of your investment process.

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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.