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Multiple insiders secured a larger position in ATCO Ltd. (TSE:ACO.X) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for ATCO
ATCO Insider Transactions Over The Last Year
In fact, the recent purchase by Nancy Southern was the biggest purchase of ATCO shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of CA$48.23 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the ATCO insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 349.90k shares for CA$15m. But they sold 909.00 shares for CA$39k. Overall, ATCO insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At ATCO Have Bought Stock Recently
There has been significantly more insider buying, than selling, at ATCO, over the last three months. In fact, three insiders bought CA$8.6m worth of shares. But we did see insider G. Friesen sell shares worth CA$31k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of ATCO
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that ATCO insiders own 1.3% of the company, worth about CA$72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ATCO Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest ATCO insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for ATCO you should know about.