 Alamo Group Inc NYSE:ALG was trading 0.2 higher from the previous closing price. EVP Agricultural Division Raborn Richard Hodges filed a Form 4 with the SEC on Tuesday, June 30. The insider sold 500 shares at an average price of 97.65. After the transaction, the executives stake in Alamo Group Inc. moved to 7,327 shares.Why Insider Transactions Are Important? Insider transactions shouldnt be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.Insiders buying stock after a notable sell off can indicate an insiders long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesnt feel the stock is overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to take some profit and lock in a gain.Transaction Codes To Focus On Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.See more from Benzinga Insider Buys Translate Bios Shares Huntington Ingalls: Price Over Earnings Overview A Peek Into Textrons Price Over EarningsC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 