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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 Atalaya Mining Plc's (LON:ATYM) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Atalaya Mining
Atalaya Mining Insider Transactions Over The Last Year
The Non-Independent Non-Executive Director Jesus Lopez made the biggest insider purchase in the last 12 months. That single transaction was for UK£370k worth of shares at a price of UK£4.00 each. That means that an insider was happy to buy shares at above the current price of UK£3.46. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Atalaya Mining 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Atalaya Mining is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Atalaya Mining insiders own about UK£4.0m worth of shares (which is 0.8% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Atalaya Mining Tell Us?
The fact that there have been no Atalaya Mining insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Atalaya Mining insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Atalaya Mining you should know about.