Allegro MicroSystems (ALGM) has dropped 2.54% since major shareholder, Sanken Electric Co. LTD, offloaded 28.75 million shares. The $665.85 million deal went down on July 29th. ALGM stock is down roughly 19.8% YTD.
AppFolio (APPF) felt the heat, too. Major shareholder Maurice Duca sold 11,627 shares for $2.79 million. The stock has taken an 18.26% nosedive since the July 26th trade. APPF stock is up about 30.2% YTD.
On the flip side, Bankwell Financial (BWFG) got a vote of confidence. Director Kevin Leitao scooped up 2,500 shares, dropping $67K. The stock’s up 2.20% since his July 29th buy. BWFG is down 4.65% YTD.
Lakeland Financial (LKFN) and MetroCity Bankshares (MCBS) saw smaller insider moves. LKFN’s CAO sold 415 shares, while an MCBS director parted with 1,256 shares.
Investors keep a close eye on insider trades for good reason. When company bigwigs buy or sell their own stock, it can signal confidence or concern about the company’s future.
Big purchases might hint at upcoming good news, while major sell-offs could raise red flags. But it’s not always that simple. Insiders might sell for personal reasons or buy to boost investor confidence. That’s why it’s important to look at the bigger picture, considering the size of the trade, the insider’s position, and overall market trends before jumping to conclusions.
