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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in ATCO Ltd. (TSE:ACO.X).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
View our latest analysis for ATCO
The Last 12 Months Of Insider Transactions At ATCO
Over the last year, we can see that the biggest insider purchase was by Chair & CEO Nancy Southern for CA$2.0m worth of shares, at about CA$40.51 per share. That means that an insider was happy to buy shares at around the current price of CA$42.19. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid CA$21m for 525.90k shares. On the other hand they divested 1.66k shares, for CA$60k. In total, ATCO insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ATCO is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Have ATCO Insiders Traded Recently?
In the last three months, President of Frontec Jim Landon sold CA$3.2k worth of shares. That's not much at all. Ultimately the overall selling isn't enough to tell us much.