Bullish insiders at Atlanticus Holdings Corporation (NASDAQ:ATLC) loaded up on US$8.9m of stock earlier this year
Quite a few insiders have dramatically grown their holdings in Atlanticus Holdings Corporation (NASDAQ:ATLC) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
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 Atlanticus Holdings
Atlanticus Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by David Hanna is the biggest insider purchase of Atlanticus Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$27.60. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Atlanticus Holdings insiders decided to buy shares at close to current prices. We note that David Hanna was also the biggest seller.
In the last twelve months insiders purchased 327.00k shares for US$8.9m. But insiders sold 289.03k shares worth US$8.7m. In total, Atlanticus Holdings insiders bought more than they sold over the last year. 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!
Atlanticus Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Atlanticus Holdings Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Atlanticus Holdings, over the last three months. In total, Executive Chairman David Hanna bought US$8.8m worth of shares in that time. On the other hand, Executive Chairman David Hanna netted US$7.5m by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of Atlanticus Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Atlanticus Holdings insiders own 69% of the company, currently worth about US$275m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Atlanticus Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Atlanticus Holdings. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Atlanticus Holdings and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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