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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of ATOME Energy PLC (LON:ATOM), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ATOME Energy
The Last 12 Months Of Insider Transactions At ATOME Energy
The CEO & Director Olivier Charles Mussat made the biggest insider purchase in the last 12 months. That single transaction was for UK£350k worth of shares at a price of UK£1.06 each. That means that an insider was happy to buy shares at above the current price of UK£0.90. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While ATOME Energy insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
ATOME Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 25% of ATOME Energy shares, worth about UK£9.0m. 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 ATOME Energy Insiders?
It doesn't really mean much that no insider has traded ATOME Energy shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in ATOME Energy and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 6 warning signs for ATOME Energy (2 don't sit too well with us!) that we believe deserve your full attention.