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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Atmus Filtration Technologies Inc.'s (NYSE:ATMU) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Atmus Filtration Technologies
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Stephen Macadam for US$260k worth of shares, at about US$31.56 per share. That implies that an insider found the current price of US$33.62 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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.
Atmus Filtration Technologies insiders may have bought shares in the last year, but they didn't sell any. 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!
Check out our latest analysis for Atmus Filtration Technologies
Atmus Filtration Technologies is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Atmus Filtration Technologies Boast High Insider Ownership?
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. We usually like to see fairly high levels of insider ownership. Atmus Filtration Technologies insiders own about US$17m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Atmus Filtration Technologies Tell Us?
It doesn't really mean much that no insider has traded Atmus Filtration Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Atmus Filtration Technologies insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Atmus Filtration Technologies.