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Even if it's not a huge purchase, we think it was good to see that John Anderson, the Independent Director of Atlas Salt Inc. (CVE:SALT) recently shelled out CA$106k to buy stock, at CA$1.69 per share. However, it only increased their shares held by 9.8%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Atlas Salt
Atlas Salt Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director John Anderson was not their only acquisition of Atlas Salt shares this year. Earlier in the year, they paid CA$1.26 per share in a CA$126k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$1.99. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
John Anderson bought 531.30k shares over the last 12 months at an average price of CA$1.09. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.8% of Atlas Salt shares, worth about CA$9.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Atlas Salt Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Atlas Salt stock. 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 4 warning signs for Atlas Salt (2 are a bit concerning!) that we believe deserve your full attention.
But note: Atlas Salt may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.